QUESTION
Is my being a trustee of my mother's trust affect my personal income taxes?
Asked on Mar 06th, 2013 on Taxation - Delaware
More details to this question:
I am the executor and personal representative of my mother's will. Then she established a trust for all her assets. Afterwards, she amended her trust to read that she is the Grantor and that she and I are collectively the Trustee. Her attorney advised her that it would be easier if I would be made a trustee.
5 ANSWERS
No, unless you are being paid a fee to serve as trustee. That fee is income taxable to you and must be reported on your 1040.
Answered on Mar 07th, 2013 at 7:57 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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If you get compensation for serving as trustee, that compensation is taxable income.
Answered on Mar 07th, 2013 at 7:32 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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It is the trusts income, not yours and your have a duty to report it and distributions properly as trustee.
Answered on Mar 07th, 2013 at 7:21 PM
No.
Answered on Mar 07th, 2013 at 7:09 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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Not unless you take trustee's fees, they are taxable as income to you.
Answered on Mar 07th, 2013 at 7:05 PM