What are the tax consequences regarding converting Trust funds into a beneficiary’s name?

My son turned 18 this year. His grandparents had setup up to Trusts for him when he was younger under the UGTM. Their combined value is about $30,000. He filled out the paperwork at the brokerage to move to convert those funds to his name and his own account. What is his tax liability now that those funds have converted to his direct ownership? He will have earned approximately $10,000 in wages for his summer job.

Asked on September 12, 2015 under Estate Planning, California

Answers:

M.H., Member, California Bar / M.H., Member, California Bar

Answered 5 years ago | Contributor

If the money is a result from an inheritance, then there are no gift or income tax consequences.  


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