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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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My wife recieved 21000 dollars from a family trust. Do we

Customer Question

My wife recieved 21000 dollars from a family trust. Do we claim this on our taxes? If so would we need to pay taxes for that amount?
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

You should receive a Form 1041 K-1 which would tell you how much, if any, of the $21,000. is subject to income taxes. It is possible that the bulk, if not all, of the $21,000. is from the trust's principal, verses the trust's income, ot that the trust has already paid any tax due on the distribution.

Did you receive any correspondence with the $21,000.?

Who administers the Trust? Is it a bank trust department or an individual? You may need to check with the Trustee unless there is some indication in a cover letter than came with the distribution as to what it represents.

Does your wife know the approximate financial worth of the individual(s) who started the trust? Her parents?

Expert:  Stephen G. replied 1 year ago.

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Steve G.