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Inherited investment account

If you liquidate an inherited investment account while it is still in the trust and then distribute to funds, does the trust pay taxes on that?  Or do those receiving funds have to pay taxes?

2 Replies
Employee Tax Expert

Inherited investment account



Here is an article that addresses your question:


We cannot provide tax advice for trusts, but please take a look at the article above. 


Thank you,



Inherited investment account

Contact the trustee.


You should receive a K-1 (1041) if there is any income, gain, etc. that has been passed through to you as a beneficiary of the trust.

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