More details to this question:
My mother passed away. In her trust and will, I am the sole recipient of her house, as well as her successor trustee. The house has been sold and the proceeds are in a Successor Trustee account that I opened in the name of the trust. I would like to share the proceeds of the sale with my brother. Is this legal? Would I have to pay gift tax on the amount if over the allowable amount of at 14K/year?
3 ANSWERS
The property is yours. The trust may , in fact, require that the property be distributed to you. You can give one have to your brother, but it is a gift. You are entitled to a lifetime gift tax exclusion on the first 5 million you pass, but a gift tax return declaring that exemption has to be filed by you claiming that exemption. So formally you do not have to pay any time unless you have already used up your lifetime exclusion.
Answered on Feb 10th, 2015 at 5:41 PM
Probate Attorney serving Palatine, IL
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Law Offices of Robert H. Glorch
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There may be some different options. Talk to a probate attorney directly.
Answered on Feb 10th, 2015 at 5:40 PM
Commercial Attorney serving Chicago, IL
at
Ashcraft & Ashcraft, Ltd.
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Under the terms of the Trust you are the sole beneficiary of trust assets. Any sharing of trust distributions with your brother would be a gift from you to your brother. If the amount of the gift in any given year exceeds the annual gift exclusion amount you would have to file a gift tax return and a gift tax may be due. There is a lifetime gift exclusion amount that would mean no gift tax need be paid but the gift tax return must be filed. You should see an attorney to review the procedure that you must follow if you share distributions with your brother and the best, most effective way to share the distributions with your brother.
Answered on Feb 10th, 2015 at 2:40 PM