Living trust/will, can it be handled by family?

[curb1]

What is the name of your state? Montana
Can a living trust/will (less than 1.3 M) be handled within the family? Trustees are within family and absolutely no conflicts of interest. All assets are within the trust. Beneficiaries are the trustees. Can assets just be distributed immediately and close trust? We are aware of tax forms to be filed.

 

[taxlady@pacbell]

Living Trust

usually, that is the reason for a living trust, so the courts or attorneys are not required to intervene. If the trust is clear in how the estate is to be administered, you should have no problems. Sometimes, if the trust has to be split among a surviving spouse or into other trusts for estate tax purposes, you need an attorney.

Just read the trust document and make sure all trustees and successors are in agreement. If in doubt, see an attorney.

You could have and IRS estate tax issue if the gross estate is more than $1,500,000 for 2004, and an estate tax return for both Fed and State would have to be filed. While in trust, before distribution, you might have to file the Fed form 1041 and the corresponding state form to report income and distributions that the trust has earned.

 

[curb1]

Thank you taxlady,
"you might have to file the Fed form 1041 and the corresponding state form to report income and distributions that the trust has earned."

That actually was why I asked about the transfers immediately. To avoid the trust going on as an entity and producing income etc.. It seems like the longer a trust is active, the larger the transfer situation becomes. It would be easy to divide the assets in 10 minutes (we four are very well aware of the nature of the assets and no conflicts whatsoever). We are just trying to do what would be most efficient.

 

[Dandy Don]

Make sure you consult with a CPA or tax accountant who is experienced in dealing with estates/trusts to get your concerns answered.