Thank you in advance for your consideration!
My wife and I are both retired and use our government pensions and social security to live. Although we have some cash savings we prefer not to touch it.
My wife will inherent a portion of a trust created by her father that will be disolved and divided among she and her sibling. This trust is composed of stocks and bonds.
After receiving her portion of this trust, should future distributions/ interest/ dividends be reported as income on our joint income tax? Can her portion of this trust be used to establish a new trust with our grandchildren as owners? If so, how should earnings be reported? Are there other tax considerations that should be considered?
Best,
Charles R
