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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28090
Experience:  Taxes, Immigration, Labor Relations
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Both of my parents are dead. Each left a separate trust, which went to my sibling and I o

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Both of my parents are dead. Each left a separate trust, which went to my sibling and I on my Dad's death. I am the trustee -- and one of two beneficiaries -- for both. One of the trusts has stock that is worth less (and almost worthless!) than it was when my Dad died. I would like to combine the two trusts to simplify my accounting, but I don't want to lose the stock's tax loss if combining the trusts would be considered a taxable event.

So the question: does the IRS consider the combining of two simple trusts to be a taxable event?
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.

Hi and welcome to Just Answer!

So the question: does the IRS consider the combining of two simple trusts to be a taxable event?

Because these are irrevocable trusts - you may not combine them.

You may dissolve both trusts according to trust documents, distribute assets and create a new family trust if you want - but you may not simply merge trusts as if these are two companies.

 

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