Q: My mother died and I am her sole beneficiary in a trust. Is it more beneficial to leave trust intact with EIN or not?
My mother recently passed away and I am her sole beneficiary in a revocable trust (which is now an irrevocable trust on her passing). The trust contains two CDs and an annuity. When the trust was made, the lawyer that made it advised me to close these accounts and re-open them in accounts in my name after her passing, however the bank tells me it is more common to get a tax ID number for the trust and leave the funds as they stand. I've been attempting to figure out the tax implications of this, if I'm figuring this correctly there is a slight benefit on interest income to pull the new tax ID number as long as my income is above a certain amount, but I'm not sure of the tax implications if I ever have to withdraw interest income or principal out of the trust (if it was left intact). Is there any benefit to leaving the trust intact with a new tax ID number?
A:
Consider:
1. Estate income tax uses a different type of accounting than personal income tax.
2. Transferring your trust assets to your personal ownership will collapse your tax return obligations into one personal income return with which you are already mostly familiar.
This posting does not create any attorney-client relationship. The information presented here is general in nature and is not intended nor should be construed as legal advice for any particular case or client. For specific advice about your particular situation, please consult with your own attorney. This posting is not intended to constitute an advertisement or a solicitation.
A: The answer to your question will depend on your tax bracket and other assets you own. Without more information, it would be very difficult, if not impossible, to answer your question. Sorry about that! You would be best served by speaking with a CPA. Tell the CPA about all your assets, disclose your tax bracket, and answer any other questions the CPA may have. All the best to you.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
