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it is an irrevocable trust in her name and has been run by Bank of America since it was created
the trust simply states it will be dissolved when my wife reaches the age of 50 years old and all funds distributed to her. Before it is dissolves we are trying to determine if there are any tax issues we should be concerned with that might affect how we receive or handle the money.
does it matter what type of investments were involved? the trust is appoximately $75-100,000.
Thank you for your follow-up.The biggest issue is for anything and everything that your wife directly receives, she will pay tax based on her capital gains. So if you cannot somehow intercept the funds and shunt them to a new entity, such as potentially a new trust, the $100,000 or so she will receive will all come in at current tax rate and will become fully taxable to her. It would not matter what investments are involved, what would matter if she receives the funds directly--if that happens she likewise receives not just the money but the tax obligation also.Good luck.
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