Is an irrevocable trust fund set up w/money from a divorce settlement taxable? If so, who would be responsible for the tax on it?
I'm asking for a friend so any help is greatly appreciated. Thanks! :)
We live in the Land of the Free only because of the Brave!
Please identify yourself in 1st email w/name/username. Due to recent problem trades, if I haven't traded w/you before, I will probably require you send your end 1st or I'll need LEGIT trade references/feedback. I will be happy to provide the same. IF you plan to hold your end til you've received mine, I will need to know that IMMEDIATELY, BEFORE trade is finalized.
1|1|Depends|zombietoo|littlejadensmom@juno.com|18:43:28|02/07/2010|
. 2|2|More inside...|maraj|maraj64@hotmail.com|20:09:59|02/07/2010|
The beneficiary is actually the one who set it up, using the money that was received in a divorce settlement. The trust fund was set up to avoid something other than taxes but the trust was put in the beneficiary's name anyway along w/the trustee's name. Anytime the beneficiary wanted money out of it, the trustee was told by the trust fund attorney to go ahead & give it to the beneficiary.
So even tho the beneficiary is the one who set it up, he/she would need to still pay the taxes on it, correct?
We live in the Land of the Free only because of the Brave!
Please identify yourself in 1st email w/name/username. Due to recent problem trades, if I haven't traded w/you before, I will probably require you send your end 1st or I'll need LEGIT trade references/feedback. I will be happy to provide the same. IF you plan to hold your end til you've received mine, I will need to know that IMMEDIATELY, BEFORE trade is finalized.
3|3|yep, unfortunately|petunia1|sweetpea39@comcast.net|21:25:17|02/07/2010|
the beneficiary pays the taxes in this case. can it be changed over ??? 4|4|That's exactly what I wanted to know, on it being taxable & who's responsible for those taxes.|maraj|maraj64@hotmail.com|21:33:28|02/07/2010|
I thought as much but trying to find out anything for sure on the IRS website is like looking for a needle in a haystack. :(
What do you mean by "can it be changed over"? The beneficiary set it up as an irrevocable trust but for himself/herself. It was to avoid something (not taxes) that I'd rather not detail about too much on a public forum but that & the taxes are something the beneficiary is just going to have to worry about. ;)
We live in the Land of the Free only because of the Brave!
Please identify yourself in 1st email w/name/username. Due to recent problem trades, if I haven't traded w/you before, I will probably require you send your end 1st or I'll need LEGIT trade references/feedback. I will be happy to provide the same. IF you plan to hold your end til you've received mine, I will need to know that IMMEDIATELY, BEFORE trade is finalized.
5|5|you can call the IRS directly and talk to a real person|petunia1|sweetpea39@comcast.net|23:08:09|02/07/2010|
I would do that if they really want to make sure. 6|1|Thank you ladies! :)|maraj|maraj64@hotmail.com|09:32:43|02/08/2010|
We live in the Land of the Free only because of the Brave!
Please identify yourself in 1st email w/name/username. Due to recent problem trades, if I haven't traded w/you before, I will probably require you send your end 1st or I'll need LEGIT trade references/feedback. I will be happy to provide the same. IF you plan to hold your end til you've received mine, I will need to know that IMMEDIATELY, BEFORE trade is finalized.