Money received from trust

Forum|Forum|2 years ago
April 3, 2024
1 reply
1 view

I received money from my deceased father's trust in 2023. Do I owe taxes on the money received? They have yet to send me any forms for filing and they have not responded to my requests for the form.

Ask the Experts - MetLife IV - April 2024

DawnC

Level 15

Maybe, it depends on what kind of income you received from the trust. Trust beneficiaries must pay taxes on income and other distributions from a trust. Trust beneficiaries don't have to pay taxes on returned principal from the trust's assets. IRS forms K-1 and 1041 are required for filing tax returns that receive trust disbursements. The trust fiduciary should send you a k-1 if there was taxable income distributed to you.

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AMSDavisAuthor

Level 2

So if they haven't provided me with the forms as of today, is it safe to assume I don't owe taxes on the distribution? I've delayed filing my taxes but I don't want to file for an extension.

DaveF1006

Level 15

Usually trust distributions are taxable unless the distribution is a return on the trust principal from the trust assets. Please verify this with the trustee and if your distribution is a return of principal for the trust, it is not taxable.

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