Mike, thanks much......
A follow-up question to be sure I have this right...
1. "if the only beneficiary" - I assume you mean the grantor in our very simple case, but I will verify how the trust is written. It is basically just a trust to handle the property and nothing else or more complicated.
2. "remaining proceeds tax-free" - I assume that means that the net proceeds from the sale (after any capital gain taxes which will be small if sold quickly) are treated as principal...
I will look into the question of distributing by K-1 to the beneficiaries.
Basically, we are reworking the trust (for various reasons) and I want to make sure we have constructed things properly from the standpoint of taxes. If we simply sell the house earlier, the capital gains are sizable, so far better to have it inherited.
