Lost job.I owe IRS.Mom wants me to be trustee for youngr sibling trust fnd upon moms death.Can IRS take trust money from sibling cause my names on it?

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Lost job.I owe IRS.Mom wants me to be trustee for youngr sibling trust fnd upon moms death.Can IRS take trust money from sibling cause my names on it?

If I owe the IRS and I am designated as a trustee agent on my mom’s Will, can the IRS take that trust money or inheritance that is designed to go to my younger sibling? NONE of that money goes to me. I am only to disperse it to my younger sibling monthly so they don’t blow it all at once. I owe the IRS because I lost my job, had to file bankruptcy, took out my entire IRA for my family to live on, and now can’t pay back the taxes. I don’t want my sibling to lose what belongs to them, just because my name’s on the paperwork as a trustee.

Asked on March 16, 2012 under Estate Planning, Georgia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under the laws of all states as well as federal law, if you are solely acting as the trustee under the trust and are not to receive anything from it, the Internal Revenue Service has no right to take assets to be distributed to others under the trust. The only items up for grabs would be things that you would end up receiving from the trust.


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