Inheritance of farm from trust

[carpema]

When my mother-in-law died, 10/30/24 in Oregon, the 4 children (all adults1 in Oregon, 3 in Washington) received the farm in a trust.  The trust sold the farm and the proceeds were split between four of us ($300,000 each).  Do we need to claim this on our 2024 return or is it exempt?    Do the Washington people need to file an Oregon tax return?

Thank you,

Michael Carpenter

[email address removed] 

[quorumof1]

There are estate considerations which have been given.

Typically after estate considerations, residual trust income might pass to the beneficiary through form K-1, which would have to be included on individual tax returns.  The land, however, would not have to be reported until actually sold by beneficiary with stepped up basis consideration. (which is a good thing).

[carpema]

Thank you and no it was 10/30/2023

[carpema]

Not yet...  The Property was sold in February 2024