Trust was Beneficiary of IRA, who pays tax on it?

[jim956]

Jurisdiction

California

I am trustee of my fathers Trust, he passed away in 2015. He had an IRA and the Trust was the beneficiary. When my dad passed away, I cashed the IRA out and deposited the money in the Trust and then distributed most of the Trust money to the 8 beneficiaries of the Trust. Does the Trust pay income tax for the value of the IRA that was cashed out or does each beneficiary have to pay tax on the amount that they received?

Thank-you for any help with this, I have had a hard time finding answers to quite a few trust related questions.

 

[army judge]

I am trustee of my fathers Trust, he passed away in 2015. He had an IRA and the Trust was the beneficiary. When my dad passed away, I cashed the IRA out and deposited the money in the Trust and then distributed most of the Trust money to the 8 beneficiaries of the Trust. Does the Trust pay income tax for the value of the IRA that was cashed out or does each beneficiary have to pay tax on the amount that they received?

Thank-you for any help with this, I have had a hard time finding answers to quite a few trust related questions.

You should ask a CPA or a tax attorney.

If the funds of an IRA were distributed I suspect someone owes YOU KNOW WHO and their CALIFORNIA friends their UNFAIR share!!!!

 

[adjusterjack]

I have had a hard time finding answers to quite a few trust related questions.

You wouldn't have had such a hard time had you consulted a trust attorney and/or CPA before touching anything.

 

[jim956]

You wouldn't have had such a hard time had you consulted a trust attorney and/or CPA before touching anything.

I've already asked my CPA, she doesn't know the answer and needs to do some research.

I've had several Trust related questions where our Trust CPA and Trust attorney didn't know the answer. I've had to get the answers from the IRS.

 

[adjusterjack]

I've already asked my CPA, she doesn't know the answer and needs to do some research.

I've had several Trust related questions where our Trust CPA and Trust attorney didn't know the answer.

You might have said that.

I've had to get the answers from the IRS.

Then I guess another call to the IRS is in order.

 

[jim956]

I came to this forum because I thought the people here wanted to help with questions that were not easily found.
I'm sorry that we've wasted each others time.
If it gives you pleasure to spit in my face, go right ahead, I won't be back to respond.

 

[army judge]

I came to this forum because I thought the people here wanted to help with questions that were not easily found.
I'm sorry that we've wasted each others time.
If it gives you pleasure to spit in my face, go right ahead, I won't be back to respond.

Mate, I'm a lawyer.

I've spent the majority of my life practicing criminal law.

When I have any tax related questions I ask my friends, one is a tax attorney, the other a CPA.

It's a rare day when either one of them doesn't say, "Let me look into it, Judge!"

Very few professionals shoot answers from the hip.
My physician examines me, orders lab tests, X-rays, and sometimes has to call me with the results. Even when she knows what's wrong, she examines me, asks questions, before revealing her diagnosis.

Trust me, mate, my tax advice would make your situation worse.

Good luck.