Allen, TX asked in Tax Law for Rhode Island

Q: in Rhode island who is responsible for taxes on homes set up in a trust?

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer
  • Englewood, CO

A: It depends on how the trust is drafted but generally it is either the trust that pays and the Trustee is responsible for making the payment from trust funds or the Grantor (sometimes called the Settlor, this is the person/s that initially put the assets into the trust) for a Grantor retained trust. The trust should include language as to who is responsible for taxes. If that language is not present or not clear then the trust as owner of the asset is liable for any tax on the asset.

I would suggest hiring a local attorney for a limited representation of reading the trust and advising on who is responsible for the taxes and if that is not clear and the trust is amendable making an amendment to avoid future confusion.

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