Disolving a Living Trust

[Jamico]

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

My father and mother had a Revocable Living Trust. My mother passed away 8 years ago and her Living Trust was converted into her Family Trust which held her stocks, and named my father as trustee, and my brother and I were listed as co-trustees upon dad's demise. Now my father has passed and his Living Trust has been converted to his Family Trust with a new tax ID# which named my brother and I as co-trustees. Dad's Living Trust held his stocks, real estate, and all other tangible assets, except for his car.

What do we need to do disperse the assets of these two Family Trusts between my brother and myself? It doesn't seem difficult to change the title on the 2 homes he owned, as we were named in the will and trust documents. Dad's stock broker (CFP) is being helpful as he has converted dad's deceased IRA to my brother and my beneficiary IRA's.

What documents do we need to disperse the remainder of the assets in Mom's Family Trust and Dad's Family Trust? What recording if any is necessary, besides the real estate deeds?

As dad died in late December, when are his taxes due? Dad's estate was under 1 million so I don't think we will be responsible for an inheritance tax here in Oregon.

Thanks very much for any info you could provide!

 

[tranquility]

Dad's stock broker (CFP) is being helpful as he has converted dad's deceased IRA to my brother and my beneficiary IRA's

How will you title the IRA? What is your goal related to that money?

It doesn't seem difficult to change the title on the 2 homes he owned, as we were named in the will and trust documents.

What things were put into the trust by the will rather than funded during the life?

As dad died in late December, when are his taxes due?

Income taxes, the same as anyone else.

At the bare minimum, you are going to need copies of the trust and death certificates to present to the holders of the assets and show you are now co-trustees. Get 20 death certificates. You can get by with less, depending on the number of accounts but they're cheap. Because it seems like there is some interaction between the trusts and wills involved, it really isn't possible to advise how to go through everything without looking at the records and title. Talk to the institutions holding the accounts and ask what they want. Jump through the hoops the put in front of you.

 

[curb1]

Jamico,

Were there any debts involved? Your situation sounds clean. Do you and brother have any conflict?

You will need to file Form 1040 and Form 40 (Oregon) for Year 2009 as he would have.

You will be responsible for a Form 1041 if the trust had gross income of $600 or more in 2009 after your father's death. Then you will have responsibility for a Form 1041 for 2010 if gross income is over $600. This should be simple and not too expensive with the help of an accountant.

You are correct, $1 million is threshold for Oregon.