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Benefecter wont remove all funds from irrevocable trust,.

Benefecter wont remove all...

Benefecter wont remove all funds from irrevocable trust,. Trust already payd all taxes.

Accountant's Assistant: The Expert will know how to help. Please tell me more, so we can help you best.

Will benefector pay any fee or additional taxes?

Accountant's Assistant: Is there anything else important you think the Expert should know?

Trust was made for benefector three years ago.

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Answered in 1 minute by:
9/25/2017
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,622
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

HI, MY NAME’S LANE - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986.

If you’ll please bear with me for a minute I’ll type up my initial response, and then we can go from there if you have further questions on this

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Yes, what makes a trust irrevocable (better said maintains its separate entity status) are the terms OF the trust; the language of the trust instrument.

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The term "benefactor," although many times used anecdotally to refer to the grantor (also called the settler of the trust), is not a formal trust term of art. The three parties to a trust are the grantor, the trustee, and the beneficiaries.

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As an irrevocable trust, none of the three parties have a 100% right to the principal (called corpus) or interest/income until and unless the trust specifies OR the trust language gives that discretion to the trustee, the day to day manager of the trust.

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The grantor has NO rights (other than those detailed in the trust), the trustee is a fiduciary and owes fiduciary duty (and can be used for breach of that duty) to both the grantor - in fulfilling the wishes outlined in the trust - and to the beneficiaries, the EVENTUAL (and ultimate) owners of the trust's assets and income.

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IN ALL state's trust law (trust law is state law) an accounting, and the ability to inspect the trust document, are owed to the beneficiary (ies).

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If you can get the trust document (which, if you are a beneficiary, you have rights to) I can help you with the next steps.

...

Let me know what questions you have from here

...

Lane

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Customer reply replied 9 months ago
How provide the trust documentation to you?
I found this statement in trust:
Trust may be terminated at any time by actions of beneficiary or trustee.
Customer reply replied 9 months ago
Trust has no liens - assets except of cash. I need to know if there special IRS taxes for liquidation of trust?
Customer reply replied 9 months ago
Will you answer my question?

I can provide email but that requires a separate charge so that we get the private link. But based on what you've said, you have the right to demand. I would do so in writing in via certified mail ... yes, now let me address the taxes

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An irrevocable trust, if there is any income such as interest, files its own tax return and pays its own taxes ... OR passes the income to beneficiaries via a form k-1 and the beneficiary pays the taxes on the interest ...but not both (unless not all income is distributed) in the same year.

...

But the distribution of assets, (including cash) is not taxable. That's just a retitling,( a change of ownership)

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,622
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Tax Specialists are ready to help you
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