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  1. #1
    Join Date
    Oct 2009
    Location
    California
    Posts
    1

    Default Can Trust Estate Distribution Be Delayed

    My question involves estate proceedings in the state of: California
    I am my deceased mother's successor trustee and executor. My co-beneficiary sister agrees that she would benefit from receiving her distribution as a time-series of payments over several years, as she is not a good money manager. The trust has bank accounts and mother's house, which must be prettied up and sold. The trust is silent on timing of distribution. Is there a California or IRS requirement for fast distribution?

    This IRS section seems scary - does it apply to this situation?
    Title 26: Internal Revenue
    PART 1—INCOME TAXES
    Estates, Trusts, and Beneficiaries
    § 1.641(b)-3 Termination of estates and trusts.
    (a) ... ... If the administration of an estate is unreasonably prolonged, the estate is considered terminated for Federal income tax purposes after the expiration of a reasonable period ...
    ......
    (d) If a trust or the administration or settlement of an estate is considered terminated under this section for Federal income tax purposes (as for instance, because administration has been unduly prolonged), the gross income, deductions, and credits of the estate or trust are, subsequent to the termination, considered the gross income, deductions, and credits of the person or persons succeeding to the property of the estate or trust.

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,006

    Default Re: Can Trust Estate Distribution Be Delayed

    You haven't given us enough information to give any sort of reliable answer. You should have the trust itself reviewed by a probate lawyer, who is also familiar with the assets at issue and their value.

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