I’m the trustee over my sibling’s three children’s trusts. My sibling passed 7 years ago. One child is a minor and that child’s trust is one of two that receive monthly income from my sibling’s pension, which they both will receive until their death. The oldest child receives their portion of the pension outside of their trust. Due to the high tax amount for trusts, the youngest is paying $5,000 in taxes each year because that child doesn’t take distributions. The middle child takes enough distributions to pay for college to cause enough right-offs for their trust that no tax is paid. Would you suggest real estate or something else that could create right-offs so that the youngest child could avoid the huge tax bill each year? There is enough to pay cash for a small rental. This child will need money for college in about 5 years.
Thank you, love the podcasts, and all of the movie references,
OB1-Trustee of 3