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Subject:  Taxes for Family Trust Date:  5/12/2017  12:08 PM
Author:  inparadise Number:  125899 of 133018

We have recently had a family trust inheritance foisted upon us by a MIL looking to extend her control in perpetuity from the grave. We are unlikely to ever benefit from the trust as need has to be demonstrated to receive funds. Our kids receive the balance upon DH's death in yet another trust situation, then their kids.... MIL set up a wonderful way to provide support for corporate fiduciaries and CPAs while keeping the funds from her descendants.

Who pays taxes on the investment income from the trust? Is this yet another tax return we will have to do? And since I will cross post this on the trust board, is there any way we can skip a generation and decline the trust, passing it directly to our kids who can demonstrate need, particularly the one still in college?


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