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Trust of Deceased Mom

dmaxfield — Fri, 24 Jan 2025 23:03:41 GMT

My Mother passed and her living trust was changed from revocable to irecvocable. She had two annunities that have suvsbtantial growth from Cost to value. How is the gain recorded since I am the only beneficiury. Is it taxed at trust rates

Re: Trust of Deceased Mom

dmertz — Fri, 24 Jan 2025 23:38:17 GMT

If you are the designated beneficiary of these annuities, the trust and the probate estate have nothing to do with them. The taxable amount of distributions paid to you from these annuities, reported on Forms 1099-R issued to you, would add to your AGI and would be taxed at your marginal tax rate on your individual tax return.

Re: Trust of Deceased Mom

dmaxfield — Sat, 25 Jan 2025 00:11:08 GMT

The first contingent is her living revocable trust and second is me

at death revocable becomes irrevocable

does this make a difference

Re: Trust of Deceased Mom

dmertz — Sun, 26 Jan 2025 03:09:07 GMT

"The first contingent is her living revocable trust and second is me"

I'm not sure what "first" and "second" mean in this context. Each is a 50% beneficiary? Taxable income paid to the trust would often be passed through to trust beneficiaries to be taxed at the beneficiaries' tax rates, but that really depends on the terms of the trust.