How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask RD Your Own Question
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
Type Your Tax Question Here...
RD is online now
A new question is answered every 9 seconds

My mother and father lived in Hawaii all their lives. My dad

This answer was rated:

My mother and father lived in Hawaii all their lives. My dad passed in 1996 and my mom in 2008. My dad established trusts for both of them and my brother in law was the trustee. At the end of last year the trust distributed available cash to five surviving childred and to three grandchildren because my brother passed eight years ago. I received two check for $10,000, one from each trust.

After the market went into the dumps, my brother in law and the trust's accountant decided to delay closing the trusts until things got a little better with the stock market. A couple weeks ago I received two checks, one from each trust that totaled $39,000. I was also told that there was more to be distributed.

My wife and I both work. We also have investment properties that we rent and make income. I currently am paying $2500 each quarter for estimated federal tax and another $400 each quarter for Hawaii estimated taxes. Am I going to have to pay even more because of the distributions?
This is a distribution from the Trust. Depending on the income, gain and losses that will be reported from the trust to you on Sch K-1- You may owe tax.

It is quite possible that the entire amount of distribution is not subject to tax as part of it would be the principal amount that is distributed.

Let me know if you have any question.

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

RD and 6 other Tax Specialists are ready to help you

Related Tax Questions