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 taxmanrog Your Own Question
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 547
Experience:  Licensed CPA, MA, MST with 31 years' experience. Teach Accounting and Tax courses at Masters level.
Type Your Tax Question Here...
taxmanrog is online now
A new question is answered every 9 seconds

deceased individual has a trust. deceased had an annuity that

This answer was rated:

deceased individual has a trust. deceased had an annuity that trust is the beneficiary. Year of distribution does the trust pay the tax on the taxable portion of the annuity or the other beneficiary share the tax due. One of the other beneficiary is a nonprofit. There is no direction in the trust document to who gets certain portion of the estate.

taxmanrog :

Welcome to Just Answers! Thank you for giving me the opportunity to assist you! I will do my best to help!

taxmanrog :

The trust document is silent as to how the annuity is to be distributed?

taxmanrog and 3 other Tax Specialists are ready to help you
Customer: replied 3 years ago.

The trust does not direct the annuity

I have switched to the Q & A format, as it is easier to understand.


Normally, the trust document states how the annuity is to be distributed. If it does not, then the Trust takes the distribution. However, to avoid tax (trusts pay tax at a higher rate than individuals) the trust can distribute the income to the beneficiaries, and the beneficiaries then can pay tax on their own tax returns. On the Form 1041, the trust will get a deduction for the payments it makes to the beneficiaries.


I hope that this answers your question! If you have any more, please feel free to ask! If you have found my answer to be helpful, please rate me highly! I would appreciate that!


Thanks again! Have a great day!



Related Tax Questions