Mothers Trust

What is the name of your state (only U.S. law)? Tennessee
My mother left an irrevokable trust for the proceeds from the sale of her house to be distributed when the house was sold. The house was sold and closed on Monday, 10/11/2010. My sister is the one in charge and was told she needed to get a tax i.d. before splitting the proceeds. How long does she have to do this and how long does she have to distribute the proceeds?

Are you saying that they are creating an irrevocable trust, then putting the proceeds from the sale of the house into it, and then immediately going to distribute those funds out of the trust?

Kiawah said:

Are you saying that they are creating an irrevocable trust, then putting the proceeds from the sale of the house into it, and then immediately going to distribute those funds out of the trust?

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The trust was fixed before my mother died. The house has just sold. The proceeds are to be put in the trust and split equally. How soon should this take place?

papadan said:

The trust was fixed before my mother died. The house has just sold. The proceeds are to be put in the trust and split equally. How soon should this take place?

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Something doesn't sound right here. Was the house already titled in the name of the trust?

How long does she have to do this and how long does she have to distribute the proceeds?

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That's kind of a wide question to be asking strangers who are not familiar with the situation. At the very least, she'll have to file a tax return for the trust. She really should consult with a probate/trust attorney.

anteater said:

Something doesn't sound right here. Was the house already titled in the name of the trust?


That's kind of a wide question to be asking strangers who are not familiar with the situation. At the very least, she'll have to file a tax return for the trust. She really should consult with a probate/trust attorney.

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Everything was titled in the trust. The trust states how everything is to go. Geeting the tax id was a surprise, something we did not know about until the closing on the house. I was just wondering how long all this takes.

Well it may take a while then, because if assets were in the trust that had generated income, then trust income taxes should have been filed. In order to file, there would have to have been a tax id already.

So the trust may have some back tax problems. I suspect you are going to have to be very patient, there are legal and tax issues that will need to be resolved.

The timing can also vary significantly, based upon when she died, how large and complex the estate was, and how much work has already been done while waiting for the house to sell, etc.

I suspect that it was a living revocable trust that became irrevocable upon mother's passing.

Then the house was sold, generating a capital gain or loss and requiring a possible tax return. If so, I wouldn't distribute until after the return was prepared after the end of the year. (Unless the trust income is passed through and taxed to the beneficiaries.)

Also, the trust would need to be read to discover the distribution requirements. Also again, if anteater is correct, the trustee may need to wait until they are sure there are no personal taxes of the deceased due or other claims against the property.

I suggest the OP be patient.

You can get a tax I.D. number online, or through the mail. It is a very simple procedure. Call the IRS for help.