My mother passed away in May, 2005, leaving a mobile home lot in her irrevocable trust. My brother is the Trustee. Terms of her will stated that upon her death, the property is to be sold and proceeds divided evenly between my brother and myself, (only heirs). Due to his preoccupation with health problems, my brother has not initiated the sale. The trust still holds the property. Due to the delay, the trust has to file taxes again in 2007 to report rental income requiring additional professional fees.
1. When the property is sold will the trust have to pay capital gains tax? It was purchased approx. 1975 and there will be a net gain.
2. Is there an advantage to simply transferring the title by grant deed from the trust to the heirs as Tenants in Common and then selling the property to avoid capital gains to the trust?
3. Will this create more problems than now exist.
4. Is the Trustee at risk for not following terms of the will in a reasonable time frame?
1. When the property is sold will the trust have to pay capital gains tax? It was purchased approx. 1975 and there will be a net gain.
2. Is there an advantage to simply transferring the title by grant deed from the trust to the heirs as Tenants in Common and then selling the property to avoid capital gains to the trust?
3. Will this create more problems than now exist.
4. Is the Trustee at risk for not following terms of the will in a reasonable time frame?
