My father and his wife set up trusts to cover themselves years ago. My father died in 2011, and his part of the house was in a trust, with the three sons as beneficiaries when the house was actually sold. His wife has now sold the property. I am totally confused over how this money gets distributed to me, and what entity actually has to pay the capital gains. I live in Virginia, the property was in Nebraska. My brother is the trustee, and he is handling everything, but I'm not sure we are getting the right information. My thought is that since the proceeds from the sale of the property went to the trust, that the trust would have to pay the capital gains. Once that is paid, we'd get the remainder of the money split three ways. He is being told that once the money gets into the trust, the money gets distributed, and each of us is responsible for capital gains. I don't see how the capital gains can be split between the three of us. Luckily, I won't have to do anything until I file 2025 taxes, but I want to make sure we are doing things right. Frankly, I don't think I should by paying capital gains if the trust gets the money. I know it may have something to do with how the trust was set up, but I don't have access to those documents. If I do have to pay capital gains, do I have to pay both federal and state of Nebraska, and how do I even do that?
