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Old 09-20-2014, 10:48 PM
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Irrevocable Trust Annuity Distribution

Does anyone know if it is ok as the Trustee to distribute taxable distributions from an annuity in different amounts to the trust's beneficiaries to minimize the taxes paid. I have 4 brothers and sisters that are all in different income tax brackets and I am wondering if (for example) I can give 2 of them more income than the other 2 legally. Say $12,000 to 2 of them and $3,000 to the other two for the $30,000 I need to distribute. Thanks.



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Old 01-21-2015, 11:16 PM
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Join Date: Jan 2015
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Beneficiary Payments

I am the fiduciary for my brother's trust and it is my understanding that so long as you do not violate the terms of the trust and you notify all the beneficiaries in advance of what you are planning to do, you are ok. For example, if the trust specifies that you are to distribute specific amounts to specific beneficiaries, you are ill advised to distribute the assets of the trust in any other manner. If however, it specifies that a specific amount, say the interest earned on the trust's assets, is to be disbursed among the beneficiaries and no specific amount is stated then the fiduciary (trustee) can notify the beneficiaries of his/her distribution intentions and proceed accordingly. So long as everyone agrees with the fiduciary's decisions, all should be ok. If however, one or more beneficiaries has a problem with the distribution, stand by for stormy seas.



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