My husband is the sole trustee and executor of his parents' estate. They both passed in 2023. Assets such as homes are owned by the trust, but an annuity had no beneficiary and was paid to the estate in 2023. the estate hasn't been settled yet, pending sale of one of the homes.
In 2024, my husband, with permission from the estate attorney and CPA, transferred $$ from the Estate bank account to the Revocable Trust account. Again, he is sole trustee.
My question is - does moving the $$ from the estate account to the trust account considered a distribution. The proceeds from the estate have not yet been distributed. The move was to protect the estate proceeds from one of the beneficiaries until everything has settled.
Again, the trust was established for his parents with its own EIN prior to their deaths. He became a trustee in 2017. The estate has its own EIN too. Separate tax returns have been filed for the two in '23 and we're working on '24.
So, is the transfer of $$ from the Estate bank account to the trust bank account considered a distribution for income tax filing purposes? Despite the fact that the estate is still ongoing and is not settled yet?
