Q: I am one of four siblings who own and operatea family farm which we incorporated.
One family member plans to place her assets
in an irrevocable trust.
How will this impact the sale of the farm
and the distribution of the income from this sale?
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A: Not sure what your question is about. But sister's Trust Corpus will be legally owned by a Trustee, who will at least own, pay taxes, receive income, and possibly manage her former assets which she conveys into the Trust. It sounds like you plan a Sale already. The sister's tax consequences are her problem, not the others. The Trust will probably pay higher Capital Gains Taxes than the others. If her conveyance into a Trust is not handled correctly, the Trust could be actually ignored, or she may ignore who actually owns her former assets. And this would be critical at her death as to whether an actual Trust was created and survives.
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