How Living Trust Beneficiaries Get Taxed

[@virginiamoss7045]

These videos are so very enlightening; thanks for making them. Understanding that the typical circumstance is a married couple and their children, I wish you could address the needs of single people separately. In my case a single mother with one child who would inherit everything I have. It should be pretty simple, but I'd like to learn all that is involved so both of us would know what to expect and how to make decisions.

[@GPK111]

You missed IRA and annuity considerations WITHIN a trust. Also accumulated and pass through rules. Also 10 year distribution limits.

[@GManKeepsltReal]

I’ve been binge watching for the past week!!! I go to sleep watching and watch the end of what ever I missed when I wake up!

[@patcurrie9888]

Binge watching a few each day. Planning to do a RLT in 2022. Learning everything I can before hand. Thanks Paul.

[@cecillenadela3752]

Thank you I have an appointment today to redo mine shared your channel to my family and friends ,I will continue to follow you binged watching here too.

[@imsosmart942]

I'm a binge Watcher, too! Just last night I left my aunt's financial advisors office with her new power of attorney and we were talking about this very thing! My aunt has about 60 beneficiaries, I don't know what we'll do LOL fortunately her financial advisor and her lawyer stay in touch and they know what's going on, but when I watch your program I realize how much I don't know LOL!

[@RealJamieWorley]

When the RLT is the beneficiary of an IRA )or other taxed investment vehicle), and the RLT states the two adult children are the beneficiaries of all assets, can the two beneficiaries make the RLT pay the taxes and then receive the money "after tax"? It is my understanding that the beneficiaries in this situation have a choice: 1) receive their inheritance and pay the taxes on that IRA money, or 2) have the RLT pay the taxes on that IRA money and receive it "after tax." I'm not sure what the tax rate is for the RLT in Oregon, but one thing to note here: Oregon is not a community property state. Thanks so much for your videos! You're the best.

[@kristichu8395]

Thank you so much Paul. This is very helpful! I'm a CPA and a tax preparer. I watched every single video of yours and they clarified lots of my questions. Thanks so much and will continue supporting you!

[@benwelsh937]

hello. I am a CPA and this is helping me with client questions. Thank you!

[@chanks9315]

Ha ha -- I've been binge watching this week without realizing it's a "thing"! Thank you!

[@jessecastro8453]

Man you have great advice and knowledge on this. I'm dealing as my parents executor on their living trust so I'm seeing a lot of what your saying, but gotta tell ya, it all makes my head hurt. Being an executor is not a fun job. But has to be done. I'm already $1500.00 out of my own pocket settling this estate until the life insurance comes in. Pain.

[@toniboracchia9837]

I am a binge watcher! I miss you if I go 2 days without at least 15 min of your topics while I am on my elliptical or washing dishes! I love to multitask. It has really helped me prepare a Restatement of our trust and made our meeting with a new Estate Planner more efficient because I had outlined what needed to be changed after discussing with my husband. Thank you so much. Keep the topics coming!

[@lp8380]

Ive been binge watching, I started a new job working in estae gifts and trust tax, thank you for this advice and help

[@hivolco151]

First part of this video I was thinking WOW you are talking about my family... my brother was placed in charge and everytime I ask something he skirts the issue and says the attorney will call you, if I ask the Attorney's name he doesn't remember it... and yes it's over 8 months.. THANKS so much for what you do here!

[@jamesbecker4326]

I'm confused. In the example with mom & dad RLT, initial value 100k, mom passes with value 200k. moms 1/2 steps up to 100k and dads is still 50k. then dad passes at 300k. dads 1/2 is now 150k as all goes to kids at value of 300k but basis of 250k. Doesn't dad become the 100% owner of all of the 200k when mom passes? and then when dad passes the whole trust would step up to 300k and go to kids? your videos are excellent, you are helping soooo many people. Thank you

[@jamesbecker4326]

ok, it seems that I asked my question too soon. it depends on how the trust was set up.

[@buipham123]

I’m confused about this too. At the beginning did he say dad passed first but then later it was mom who passed first?

[@TonyDL]

@@buipham123 Yup! I got confused on that too when he switched up Mom and Dad's dates of passing. Still a great video even with that mistake...

[@MarkDParker]

Definitely a binge watcher. Thanks for the helpful information. Too bad you don't practice in Southern California! 🤠

[@brucemonkjohnson6617]

I have a trust but no instructions on how to add assets to it..?

[@rosiesturgeon7616]

I have absolutely been bi he watching for a month. I’ve learned so much. Thank you for the simplistic explanation of this information 🙏

[@macoeur1122]

semi-binge watching. I loved this one! Just inherited from my dads brokerage acct., Trad IRA, Annuity, Pension, and a CD. My brother was the executor so I didn't get a close up look at all the details...and I've been told that none of what I received is taxable (the pension tax will be paid by my brother at his tax rate, and then the remainder split 4 ways between me and my 3 sibs) We held money in the trust until tax time next year for the annuity taxes and whatever is left will be split between all four sibs. I did read something recently that suggested beneficiaries of an IRA would have to pay capital gains (no step up basis) but I've read the opposite elsewhere, so clearly I was missing something (or what I was reading was wrong). I sold the stock I inherited shortly after inheriting it and was in a bit of a panic for a moment, thinking I shouldn't have done that. But then checked the statement after selling it and it showed no capital gains or losses... Just zeros...which still leaves a question in my mind. I"m thinking "if the basis reset the day my father died...and I received the shares 4 months later...I seriously doubt that there was no gain from the day he died until it was split and transferred to us...In fact I know that those stocks went up by around 20% in that time period...so I'm still a bit confused by the gain showing $0.00 when I sold them. I'm a little concerned a mistake was made. Hoping I can count on getting a 1099 if there are taxable gains.

[@ninajohnson6578]

Can you please do the same subject for a generational trust. Thank you

[@kevinreed7181]

Clear concise and easy to follow, appreciate your videos

[@patgranson7635]

Thank you for all the information. This is definitely helping me understand what I need to do before I find an attorney to set up my revocable trust. Really enjoying your talks.

[@alexortega1397]

Love the video. Got a little confused here’s my situation. Hopefully you can respond to it. My mother passed away in December 2022. She did have revocable trust only thing that they really owned. Was the house house sold in April 23. I am the executor, I distribute portion to one of my brothers and to myself. I have not closed out the trust at this point in time because I am still making payments to my brother. My parents did not want him to have all the money at one time so the way I’m understanding what you’re saying from the sale of my parents house we do not have to pay tax on inheritance that received. I just wanna make sure I’m doing the right things since I’m the executor and I have not received any tax from anybody. Thank you for any suggestions you might have I truly appreciate it. God bless.

[@ivanhardy2288]

I’ve been binge watching. Thanks for helping me get prepared.

[@billlin9656]

You are the best, which is exactly what we want to know. Many thanks.

[@americasestateplanninglawy1946]

So nice of you

[@christinet5074]

You have a very clear way of presenting this information. The examples really help. Thank you so much!

[@annetteg405]

Yup binge watching!

[@fabby5823]

Yes, I always end up binge watching your videos. Thanks for all you do to educate us!

[@Arielarotschild]

Binge watching. I m addicted!!😂very grateful❤

[@sjkogan]

If stock in the trust received dividend and the beneficiary does not take them and the Trust pays tax for the dividends, will the beneficiary ever have to pay tax on that cash from those dividends?

[@davidfarber7542]

Yes I have been binge watching!!!!!!

[@glfnrtrvr]

I was told that the beneficiaries of a living trust get to see all the changes that happened in the trust while the maker was alive. Is that true? Or do the beneficiaries only get to see the final version of the trust after the maker dies?

[@grandpa6650]

Most excellent video, I think I will be doing that in the future. Thank you for sharing your knowledge. 🙏👍👍💫💫💫✨✨✨✨✨💥💥💥🇵🇷

[@verygood10]

Hello, I though beneficiaries did not get taxed under 11 millions.

[@jaynevanderwall4665]

Can i lose my ssi if i inherit from my brothers trust

[@gilbrook]

Great content! Regarding traditional IRAs, if there were grandchildren (and concern with making them direct beneficiaries) can living trust be direct beneficiary of the IRAs and distributions to grandkids administered over time by rules of trust? Tax implications? ThankU!

[@vernonsteinkamp1088]

My parents purchased their home in 61 for 39k now it's time to sell and it's on the market 460k. At the time of my mother's death (2016) it was worth 400k. Capital gains tax on 60k minus the improvements made after my mom's death? The reason in the delayed sale is because my sister was allowed to live in it until her death.

[@Savingusnow]

Switching trust types on the stocks is very confusing. Too much for most people. You took a simple example and confused it.

[@audreyking5887]

My dad had a will

[@audreyking5887]

I am not selling the family farm and there are no vehicles because very thing vehicles whet to action

[@jameswhited4152]

What if the estate was originally worth 5 million and we inherited 300k cash 147k going to the lawyer and both houses are worth less than the tax rolls?

[@kaetischmalenberg222]

I’m starting to binge watch. Very informative!

[@jeffcarucci359]

Lots of good info. I've got a question. I'm a son and beneficiary in a living trust also the executor. Mom passed this year. We are about to sell her home. I owe the IRS $20,000. Up till now I've been listed as uncollectable. If I was to leave my portion in the trust account will the IRS see my portion of the money? My portion will equal approx $125,000. Yes I don't want to tell them

[@mikemason2203]

Thank you for the information. What happened if one of the beneficiaries is living in the house of the deceased parents that is under an irrevocable trust . What is the tax consequences?

[@Hippy2021]

Am not millionaire, or am I when selling my home?. I have one adult child, one home, a nice car and bank accounts, one saving, one checking and a few stock market. Thinking to sell home, buy gold put in safety box at bank to simplify life. My adult child sharing all accounts with full authorized access and beneficiary on my pension. Moving out to europe for better living

[@CentralNH]

What about when you do taxes following year Dad was retired died in April...what happens when you do his taxes for the year he died?

[@mariaarroyos2925]

So if the house increased after death, children would be taxed on increase, but only until they sell house?

[@jwil7584]

Yes, I'm binge watching your videos. Thanks Paul. I'm getting a great education.

[@joet.7831]

Yes I binged watched for 2 + days

[@mariceldb2990]

I religiously watch your interesting and informative video. Thanks. Keep up the good work.

[@jameswhited4152]

What if the home depreciated because of squatters that turned it into a dog kennel and another house was trashed in a somewhat similar circumstance? Im going through this now in Texas

[@ajacic100]

How does trustee files K1 (net income distribution) to former citizens who doesn’t live in USA and doesn’t have any tax #? Thank you

[@PA-qs6bv]

Need help on living trust and how to not pay taxes if person is lowincome

[@bradleyhasse5220]

Its always a good thing to at least be informed. Great video.

[@ninelr222]

I am binge watching your videos. Thanks for great info. I have a question. You said the bank account was in a trust. Why in a trust if the children could be just the bank account beneficiaries? And what is the difference in terms of taxes paid between these two situations?

[@mrasmussen5506]

Thank you. This is exactly what my spouse and I are trying to learn more about.

[@catherinemoseley9206]

I Thank you! I am binge watching (LOL),and learning so much about the whole "iceberg" of estate issues. What seemed pretty straight forward is fraught with hidden dangers. I still find "step up" confusing. Is there a way to visually illustrate this concept to make it easier to follow? The growth in equity is split between trust originators, but you loose me when they start dying.

[@tutaumuamulivanu768]

What if the kids decides to donate the car to a nonprofit? Or give it to some else for FREE? Is it taxable in California?

[@2BailaConmigo]

Binge-watching! Can’t help it. I am learning so much about all the estate planning steps. Hopefully I can do mine soon. It’s a big concern for me. Thanks for educating.

[@wellyahknow]

i am a FAN, big question i have not seen yet WHAT IF, the estate has a reverse mortgage on it and it was never reimbursed during their lives? How do the heirs deal with that ?

[@bettyschmidt514]

Binge watching in Pennsylvania.

[@edkoehler1809]

Paul- Another great video. All of your videos are easy to understand and well done. I do have one question for you. My sister and I are benefciaries of my parents trust. The trust is to pay both of us roughly $100,000 per year from stock dividends. This schedule is to continue to our deaths. Is the $100,000 that we are to receive tax free or will there be a 15% capital gain tax? thanks Ed Koehler

[@yesitjcampo1679]

Thank you for the info Paul. I am a CPA in Miami, concentrating in taxation. Any comments on estate taxation on NRAs or trust issues for NRAs ?

[@user-fx5pn3rh2s]

Exactly how is the income from a grantor trust reported on a 1040? Is there a separate schedule to be attached or is the dividend income just listed with other dividend income on Schedule B?

[@Docinaplane]

What about all the fees the broker charges for selling the investments?

[@rpbale]

Hi Paul, love your video. They have been invaluable since my mother passed in Feb in CA. I am the trustee and live in FL. The trust has finished selling the CA home and I'm ready to distribute the proceeds to the three beneficiaries...after I have a trust tax accountant advise me on these last steps. Do I need to use a tax accountant licensed in CA, FL, or does it matter? I plan to hold back some of the proceeds in the trust until I confirm there are no final property taxes owed from house gains after the DOD. I recall you saying you only handle LA. Thanks

[@stephen5147]

QUESTION: Both parents have died... kids are selling their car... who signs the back of the title?

[@wisconsinfarmer4742]

executor who is recognized in probate

[@stephen5147]

@@wisconsinfarmer4742 Everything is in a trust. Open a probate just to sell the car?

[@lightsourcer1703]

@@stephen5147 A Successor Trustee signs everything-house, cars, bills of sale, etc.

[@lightsourcer1703]

I have become a binge watcher. Thank you.

[@joycejones6983]

Paul.. what do you suggest to have if you only have a house (worth is only 200,000) and a 15 year old car. No savings or any investments. Really need an answer to move on to get done my age is 78 Thank you

[@thethingsyouwillfind7493]

Binge watching. Super helpful! Thanks for taking the time to make these

[@dls300]

My mom had an annuity that she started collecting on 3 months before her death (we chose a money market and monthly income payments for 10 years). Well, the annuity company said that they would only send payments to the Trust. And the 4 beneficiaries would receive monthly payments for 9 yrs. 9 mos.. So my accountant says that I have to file income tax for my mom for 10 yrs. after she died. I think that they just wanted to keep the money as long as they could.

[@flowersflowers5070]

Not sure on a house sale. Mom & dad bought house for 100.00 they both pass away..they had a Will. The house is now worth 325.00 no estate tax but how much capital gain? If I'm understanding correctly.

[@wisconsinfarmer4742]

Cap gains begin at the time of ownership transfer. explanation at 7 minutes

[@jrpeet]

You are an effective communicator

[@atmydesk1948]

Binge ing

[@rinihaque2946]

question my mom wants to create a revocable trust for few investment property for my daughter who is 19 year old. I will be the trustie, mom is grantor and my daughter is the beneficiary. I understand that daughter will get the step-up value when My mom dies but those are income producing properties. so question is who will collect those and pay income tax for those properties every year until she passes away and while my mom living can she still enjoy the income and pay income tax until she is dead ?

[@rinihaque2946]

also is anything she needs to report to IRS?

[@jeffcarucci359]

Thanks for a non responce

[@JoelDillard-rm3qs]

Love your content Paul. Question. If a living trust holds an entity such as an LLC Holding Company that owns rental property and it pays a low salary, say 10% of earnings and the rest is treated as retained earnings to later reinvest in future acquisitions, does that change the math on tax filings? Seeking a strategy that will allow my mom's estate to grow virtually unmolested by the IRS to ensure there is enough there to self pay for eldercare. Any feedback or information you can provide would be great. Thx.

[@jayhawk405]

Binge watching! Great Help!

[@janmerghart5617]

So cool that a lawyer does this kind of videos on youtube! Im a teenager and my mom is ill :(, so i needed to know some information about the taxes in a trust, and you really helped me allot. very good chanel!

[@americasestateplanninglawy1946]

Even cooler Jan that you’re helping out your mom! Best wishes 👍🙏

[@jimhandler1129]

My Mom is in assisted living and her house is in a revocable trust. What is the step up in basis if the house is sold while she is still alive?

[@rajbeekie7124]

I am guessing it is best not to sell the house. I believe the step up applies after death of owner.

[@jimhandler1129]

Taxes are 25K a year, but I was hoping there was a step up in basis when it was put into a revocable trust.@@rajbeekie7124

[@befoot]

Thanks so much.....so very very much!!!

[@stevenmeek9756]

Thank you, brilliant explanation.

[@saraht4973]

Thank you.. your videos are so helpful.

[@MiaPlayzRoblox11]

I need help. I've got a real interesting Trust question. Where can I reach you? You might want to address this question as one of your videos.

[@danielmallory845]

Very, very informative and helpful.

[@Morningdovecamp]

I have been watching quite a few of your videos as I am in the midst of estate planning. Thank you for your great presentations 👍

[@JL-ov8db]

Thank you so much for the video!

[@slimdawgwoof]

Another awesome video! Keep them coming! Thank you!

[@americasestateplanninglawy1946]

If you keep watching SD, I’ll keep ‘em coming! 😋

[@coreopolis]

Been binging, smashed that button, rang that bell, eating it all up, I’ll still probably engage the services of an attorney, but being an accountant and learning from your series is going to make me one prepared puppy!

[@americasestateplanninglawy1946]

Love it 🥳

[@alviebarbaza2005]

Good review to prepare .

[@monseneur00economist]

Can after tax investment accounts be put into the trust?

[@ushavoruganti5867]

WHAT IS FULL FORM OF IRA AND RLT.

[@virginiamoss7045]

Individual retirement account and revocable living trust. I get annoyed at all the acronyms and initializations people throw around so arrogantly, even professional writers and journalists. The first time you use one, first say or write out the entire words followed by the initials in parenthesis. Then use the latter from then on. Do not assume!

[@pattersonlandscaping5621]

thank you

[@mikecarey2345]

great video. thanks

[@alicechung4387]

Binge watching.

[@mercurynfo]

Please confirm whether Roth IRAs held in RLTs have no tax implications. Stepup in basis? Thanks.

[@michelesimko7541]

Is irrevocable trust taxed?

[@wisconsinfarmer4742]

yes, the nice thing, it is a separate entity and taxed lower than your high income. and it is only taxed on the amount of income it produces. Mine is set up to distribute half of the gain every year while I am alive so the kids can enjoy some inheritance before they are too old.

[@zacharycarr1879]

Good video

[@roxannek.theodoropoulos3063]

Binge watching

[@ecf9674]

Binge-a-min

[@atulp3360]

Excellent video! Thanks for high-quality info. Cheers!

[@americasestateplanninglawy1946]

Cheers back to ya! 🍻