BubbaChris
Recycles dryer sheets
Here’s a little more input based on my experience.
Some ‘Simple’ trusts require you to distribute earnings to the beneficiaries each year. That means both filing the Federal 1041 and K1’s. Other trusts may give you the flexibility to have the trust earn the income and pay taxes on it (and yes, the tax rate is higher than what the beneficiaries are likely to pay). If you are willing to learn the differences in filing taxes for a Trust, TurboTax Business (not Home & Business) can be a DIY approach. I paid roughly $125 through Costco for the 2023 version.
If you are the sole Trustee, there may be clauses that indemnify you from other beneficiaries making judgments about your choices. There may also be clauses that reduce their inheritance to $1 if they contest the will/trust. All that said, keeping the other beneficiaries in the loop and comfortable about the process is wise, especially since you have siblings living in her house.
When searching for a better place to keep the funds, ask the institutions if they accept Trust accounts for that high yield product, many do not. And be prepared it often is a PITA to open a new account for a Trust, as the branch personnel typically cannot do it without involving that organization’s Trust department.
In sympathy for your loss and the job ahead,
Chris
Some ‘Simple’ trusts require you to distribute earnings to the beneficiaries each year. That means both filing the Federal 1041 and K1’s. Other trusts may give you the flexibility to have the trust earn the income and pay taxes on it (and yes, the tax rate is higher than what the beneficiaries are likely to pay). If you are willing to learn the differences in filing taxes for a Trust, TurboTax Business (not Home & Business) can be a DIY approach. I paid roughly $125 through Costco for the 2023 version.
If you are the sole Trustee, there may be clauses that indemnify you from other beneficiaries making judgments about your choices. There may also be clauses that reduce their inheritance to $1 if they contest the will/trust. All that said, keeping the other beneficiaries in the loop and comfortable about the process is wise, especially since you have siblings living in her house.
When searching for a better place to keep the funds, ask the institutions if they accept Trust accounts for that high yield product, many do not. And be prepared it often is a PITA to open a new account for a Trust, as the branch personnel typically cannot do it without involving that organization’s Trust department.
In sympathy for your loss and the job ahead,
Chris
