Welcome. Thank you for choosing us
to assist you. My name is ***** ***** my goal is to help make your life, a little... less taxing.
Whether the money that your son receives yearly will depend on the type of trust that it is. You must first find out what type of trust it is. SEE BELOW:
If you inherit from a simple trust, you must report and pay taxes on the money. By definition, anything you receive from a simple trust is income
earned by it during that tax year. The trustee must issue you a Schedule K-1
for the income distributed to you, which you must submit with your tax return
. If you inherit money from a complex trust, however, the funds might represent either income or capital gains
. The portion representative of the trust's income is ordinary income
and is reportable by you on your tax return. You'll receive a Schedule K-1 for the amount. Any portion of the money that derives from the trust's capital gains is capital income, and this is taxable to the trust. This is typically the case when the trust's distributions
for the year exceed the amount of income it took in.
Let me know if I can be of further assistance to you regarding this matter.