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Conflicting opinions

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whotobelieve

Junior Member
What is the name of your state? Florida A specific devise in the Trust Agreement of my deceased parent provides that a promissory note secured by a real property mortgage be distributed to the borrower, effectively cancelling the debt. The Trust attorney has advised me the debt cancellation is taxable income to the borrower, however my accountant suggests there may be donative intent and that the return of the note represents a distribution from the Trust and is therefore not taxable to the borrower as income. My parent had a long term relationship with the borrower although they never married and were domiciled in different states. Who do I believe? A codicil to an earlier will distributed a condominium to the individual who subsequently became the borrower. When the borrower entered into the promissory note agreement, my parent created the new will with the specific devise.
 


tranquility

Senior Member
I don't see how there can be any argument that this is not a gift from the positon of the receipient from the facts provided. The implications to the trust depend on the surrounding facts and the terms of the trust.
 

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