This money was left in a "trust for" account. Will this money be treated as income and then taxed at my tax bracket?
In most cases little to none of the distribution is taxable income to you. However, the tax rules for trusts and beneficiaries are very complex. Only the trustee who manages the trust will know the definite answer. If you do need to report some of the distribution as taxable income, the trustee will give you a Form K-1 to use in preparing your taxes.
In most cases little to none of the distribution is taxable income to you. However, the tax rules for trusts and beneficiaries are very complex. Only the trustee who manages the trust will know the definite answer. If you do need to report some of the distribution as taxable income, the trustee will give you a Form K-1 to use in preparing your taxes.
There was no trustee for the estate. My brother and I had to go to the bank at the same time to sign forms and the bank then cut us seperate checks. Would the bank be the trustee in this situation? I definitely want to claim it if I have to but it would be great to not have to.
This really only becomes an issue where the estate is in a lengthy probate or there is a trust. You might contact the bank to find out if it will issue the two of you a tax form for interest earned by the account, but it's likely that will all be reported on your late father's final tax return.