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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55153
Experience:  29 years of experience as a tax, real estate, and business attorney.
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Is a partial distribution from a living trust fund taxable?

Customer Question

Is a partial distribution from a living trust fund taxable? Our dad passed away in July. We have received a partial distribution of $20,000. The remainder to be disbursed with the sale of his house. Is this money taxable?
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.

Good morning. My name is ***** ***** I look forward to helping you.

No, this is not taxable. This is simply an inheritance which is not subject to either Federal or Utah state inheritance taxes. The living trust was simply set up to avoid probate by having the estate distributable pursuant to the trust agreement rather than the will. So, you neither need to report the disbursement of these funds on your tax return nor do you owe any taxes on it.

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