muniment of title tax question

[sharon1]

my brother died in texas in 2001.. I filed for muniment of title in that state. He has one daughter age 22, but because of circumstances, he asked me to be named as trustee to oversee any monies received from life ins. and the selling of his home in texas. all monies received are to be placed in a trust fund for her to be distributed at $600.00 per month instead of a lump sum.all of this has now been probated, but my question is... when the home is sold, does she have to report the proceeds as income since I will be putting the money into a trust. i rented the house out for her for one month in 2001. if I'm corect, she will have to report this income oh her tax return, right?
thanks for any help you can give me.
/sharon1

 

[advisor10]

1-23-2002

This type of question is better answered by any local tax accountant or CPA in your area. From my limited understanding of the tax law, this might be considered a capital gain and I don't think it would affect her tax situation too seriously--the effect would be small or virtually none at all if reported properly.

 

[sharon1]

follow-up question

thank you for your reply. however i have another question. since the muniment of title is complete, and i am trustee for my niece, whose name is the real estate property in that belonged to my brother? is it still in his name? my reason for asking... my nieces husband is wanting to file bankruptcy and i know he has told the attorney about her having this property in texas. i just hate to see all the money he (my brother) paid as downpayment in the property literally go down the drain, because i am afraid she will lose the property now before i can get it sold as my brother requested.