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Trust account. Set up 10 yrs ago. 18 yr old disable to

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Trust account Accountant's Assistant:...

Trust account

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Set up 10 yrs ago. 18 yr old disable to receive soc sec. must close account. tax responibility $8,000.oo

Submitted: 7 months ago.Category: Tax
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12/7/2017
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,639
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.

How, exactly, can I help?

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Customer reply replied 7 months ago
10 yrs. ago I set up a trust for my nephew. He was 8yrs. now he is 18 yrs. old He also is atistic and considered eligable for disability of soc. sec. He cannot have it with the trust which is still $8000.00. What is the tax liability, what is the correct way to handle this?
Customer reply replied 7 months ago
why don't you answer me?
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago
You need to spend down the trust on the supplemental needs that qualify for a trust such as this ... NOT food clothing or shelter
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Customer reply replied 7 months ago
the question was sent at 12:00 still no answer.
Customer reply replied 7 months ago
Money already p aid
Customer reply replied 7 months ago
I can only read the first line of your answer. the Want to s with to a live phone call covers up your answer....
Customer reply replied 7 months ago
If that is the only words to your answer that is ok. I do not want you to call me or pay additional. Thank you
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago

I'm so sorry ... I think the site is glitchy today. If you're viewing this on a device (such as a phone or tablet) that also might be the problem.

...

I also didn't get the heads-up that you had returned. (Another reason I think there may be some site issues today).

...

Regarding that phone offer thing, that's something that the site throws up there (that did not come from me), Although I don't mind speaking with you at all. I'm not sure it's necessary here.

...

Back to the issue. Irrevocable trusts such as this only pay tax on the INCOME UNLESS they distribute INCOME via a K-1. In that case the beneficiary pays the income tax on their own personal return (rather than the trust paying income tax in the trusts form 1041).

...

You said earlier "tax responsibility 8000." Can you explain that? (If you're saying that the trust has an $8000 tax bill then that needs to be paid from the trust's funds)

...

And as I mentioned before, with a supplemental needs trust such as this, it's important to spend the dollars on NON-essential items.

...

Finally, if this is about qualifying for Supplemental Security Income,there is another whole set of issues. Please let me know EXACTLY what your question is and maybe we can go from there (and I'll be checking back at the questions thread specifically)

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 7 months ago

Hi, Lane here.

...

I’m just checking back in to see how things are going.

...

Did my answer help?

If so, I'd appreciate a positive rating, using the stars on your screen, and then clicking “submit" – That’s the only way I’ll be credited for the work.

But if you need more on this please let me know

Lane

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