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.