Inherited investment account

[With1L]

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?

[Jackstar221]

Hi,

Here is an article that addresses your question:

https://turbotax.intuit.com/tax-tips/estates/4-ways-to-protect-your-inheritance-from-taxes/L653s0Kyn

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

Thank you,

John

CPA

[Anonymous_]

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.