Selling Property in the Trust

What is the name of your state (only U.S. law)? South Dakota

When my mother died the farm land was put into a trust under her name. The trust will be dissolved when my father dies with my brother receiving 50% and my sister and I each getting 25%. According to the trust my brother has the option to purchase parcels of the land from the trust at any time for fair market value. He now wants to purchase one parcel. How should this transfer of the property be handled and when I recieve payment for my portion will I have to pay taxes on it?

the buyer (your brother) gives the money (amount to be determined by an appraisal) to the trustee. The trustee then writes a deed transferring the property involved from the ownership of the trust to the buyer. Trustee then puts the money in the trusts bank account.


as to you paying taxes on anything derived from the trust; most likely yes but you should speak with a tax consultant about your tax situation. There are a lot of variables involved that would change what you would have to pay taxes on. You wouldn't have to worry about it until the money is disbursed from the trust though. Unless dad is leaving soon, your income from the trust could change drastically so, as they always say; don't count your chickens before they hatch.