What to do about a Trust and taxes?

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What to do about a Trust and taxes?

My grandfather passed away a few years ago and left money in a trust to my mom. My mother has recently passed away and it states in the trust that any money owed my mother would be passed to her children. My uncle is the executor of my grandfathers estate and is now asking us to provide him with tax information before he puts any money into my mom’s estate. I have heard from other family members that my grandfather’s estate is set up to pay any taxes that beneficiaries would owe. Is this possible or is it more likely that I would have to pay a tax on any money inheritied?

Asked on May 2, 2013 under Estate Planning, Colorado

Answers:

Nathan Wagner / Law Office of Nathan Wagner

Answered 8 years ago | Contributor

In general, the estate pays all of the estate taxes before distributing assets. It is possible, but not likely, that you would have to pay taxes on the inheritance.


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