Unfortunately, the filing date for the trust is normally a calendar year so the trust return is not due until April 18, 2011. There is no special rule for getting the K-1s to the beneficiaries prior to that date. So, in short the grantor has until April 18 2011 to get the K-1 to you.
and how will I be able to do my taxes if they dont give me the info b4 then?
do you know if I will have to pay taxes for money received from a family trust account?
Without complete information, you would have to file an extension and pay the assumed tax with that extension to avoid late payment penalties.
I suggest having everything else to your tax preparer, or in the software if you prepare your own return, so when you receive that K-1 all you have to do is enter it in and you are done.
As for paying taxes for money received from a family trust account, that depends on the individual trust and its earnings. There could be taxable income but it may not be the amount that you received in cash as some of the funds could be corpus of the trust.
I have received about $3000. from a revocable living trust agreement after the settlor died. does that help know if I will need to pay taxes on the $?
Unfortunately, that doesn't help. Sorry. Part of that could have been assets placed in and not all income. I suggest contacting the grantor or the accounting firm handling the trust and ask them an ETA for the K-1. If you have not done so already.
as a beneficiary am I allowed to get that info from accounting firm?
the trustee is my step sister and she will not talk to us
The accounting firm should be able to give you that information since you are the beneficiary. In addition, if you are calling requesting it, sometimes they speed up the process if they can. The squeaky wheel....
ok. I have my trust agreement with me. Do you know if the tax information ( if I have to pay or not) would be in that somewhere?
When you contact the accounting firm, you can always start the conversation as "I was just confirming that you have my correct mailing address on my K-1 for such and such trust. And do you have any idea when that was or will be mailed out to me?
Normally, if they say that all interest income or dividend income or business income will flow to such and such beneficiary and corpus remains in the trust, then it may be all taxable. However, if any corpus (which is the assets put into the trust) is coming out, that will not be taxable. Plus, you may not know what type of income you received. If assets were sold, it could be capital, if it is interest income, it may be ordinary, if it is dividend income, it could be qualified. All these items are taxed at different tax rates...so it is very difficult to determine taxable income without all the definites which would be on that K-1.
well, thank you for the information . I guess I will need to contact her accountant tomorrow. I cant think of anything else to ask at this time. Have a great day- Rhonda