I am trustee for two trusts with the same beneficiary. The trusts hold identical mutual funds, ETFs, and cash. The custodian is Schwab. The trusts documents allow trusts to be merged. I would like to consolidate the accounts for ease of administration, so I only have to file one tax return, one accounting, etc. If I do a direct in-kind transfer from one trust to the other, does that trigger a taxable event? No assets are being sold, only transferred. What instructions should I give to Schwab?
