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


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.  

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.