What is the name of your state (only U.S. law)? California
I am the beneficiary of a GST - Generation Skipping Trust - set up by my grandmother, to be the recipient of money upon her death. This trust included investments in stock and bonds, etc. She died a couple of months ago and my question is about taxation of this money.
The trust was set up for me and my 2 siblings and the allowed maximum $2 million was put in there and is to be split 3 ways when the estate settlement is done. I was told that I might need to pay taxes on "realized net capital gains." This trust has decreased in value with the market and is now worth less than the original $2M. Does this mean that I may need to pay taxes on what was earned from the investments? What if there were no earnings, only losses (as is my case)?. Will I need to pay some kind of taxes on the entire amount of my share? I thought that the benefit of a GST was such that taxes were not part of it? The trustees only give me legal jargon and I can't seem to decipher what it really means. Can someone explain it to me in layperson's terms?What is the name of your state (only U.S. law)?
I am the beneficiary of a GST - Generation Skipping Trust - set up by my grandmother, to be the recipient of money upon her death. This trust included investments in stock and bonds, etc. She died a couple of months ago and my question is about taxation of this money.
The trust was set up for me and my 2 siblings and the allowed maximum $2 million was put in there and is to be split 3 ways when the estate settlement is done. I was told that I might need to pay taxes on "realized net capital gains." This trust has decreased in value with the market and is now worth less than the original $2M. Does this mean that I may need to pay taxes on what was earned from the investments? What if there were no earnings, only losses (as is my case)?. Will I need to pay some kind of taxes on the entire amount of my share? I thought that the benefit of a GST was such that taxes were not part of it? The trustees only give me legal jargon and I can't seem to decipher what it really means. Can someone explain it to me in layperson's terms?What is the name of your state (only U.S. law)?