Does a Successor Trustee HAVE to Open a Trust Banking Account

[PJhiker]

My brother is the Successor Trustee of our families trust. It consisted of some money from my father's banking account and my father's house as the assets. While the Trust is in the Trusts name (basically parents names) my brother never opened up a trust banking account to put the funds into. I think for the banking account that was my father's he just had the bank write him a money order in his name by proving to them he was the Trustee. I have a 1099-S form with the Trust in the Trust's name that my brother sent me as a photo just for information. When the house closed I believe he also just had the funds put in his own perusal account. he wrote me a check for both things from his account.

My question (concern) is now that we are at tax time is this going to be an issue with the IRS on my end? My brother still needs to get me a K-1 form. I mentioned to him about getting a Trust account and he said it was not necessary.

[Mike9241]

not at your end as long as your bro issues a correct k-1.  The sale and any other trut activity needs to be reported on form 1041 and K-1s issued to each beneficiary. If he won't you need to see a lawyer, possibly to have him removed as trustee. As a matter of principle, the trustee should have opened an account in the name of the Trust and that's where all the trust's money should have been deposited and from where all the bills should have been paid.  can't say what the IRS might do if it discovers your bro used his own personal account. the bank should have blocked the use of your father's account upon his death

[PJhiker]

So technically he did not follow Probate law by opening the Trust account? So it sounds like I really don't have to worry right? Also, why should the bank have done that? I mean I get he did not open a Trust account, but is not as the Successor Trustee allowed to close my dad's accounts and transfer the funds?