My mother passed away. She had a Revocable Trust and a Living Will at the time of her death. She lived in Ca, her property is valued at $427,000. My sister, brother and I are closing escrow in a few days and will each receive one third of the proceeds. We have been asked to fill out the 2009 RE Withholding Cert 593-C and a Seller's Cert for RE Reporting Requirements.

My question: Is my mother's trust (seller) a "grantor trust"? If so, is the trust then disregarded for tax purposes and we must each report the sale and claim the withholding on these forms?
OR... is the seller a "non-grantor trust" - and we would enter the name of the trust and her SS #?? The verbiage is from the Instructions for the Form 593-C

Please help as soon as possible. I live in Ca - how would I find out how much I would have to may on my 1/3?? Would I pay now or wait until taxes are due next year?

Thanks so much

Mag1

Quote:

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Originally Posted by mag1

My mother passed away. She had a Revocable Trust and a Living Will at the time of her death. She lived in Ca, her property is valued at $427,000. My sister, brother and I are closing escrow in a few days and will each receive one third of the proceeds. We have been asked to fill out the 2009 RE Withholding Cert 593-C and a Seller's Cert for RE Reporting Requirements.

My question: Is my mother's trust (seller) a "grantor trust"? If so, is the trust then disregarded for tax purposes and we must each report the sale and claim the withholding on these forms?
OR....is the seller a "non-grantor trust" - and we would enter the name of the trust and her SS #??? The verbiage is from the Instructions for the Form 593-C

Please help as soon as possible. I live in Ca - how would I find out how much I would have to may on my 1/3 ??? Would I pay now or wait until taxes are due next year?

Thanks so much

Mag1

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This is a tax question, not an other law question. I have asked that it be moved so that the experts on that board will see and answer it.

Not only is it a tax question, it is a VERY COMPLEX tax question which should NOT be posed on a forum of this nature.

Contact a local CPA or enrolled agent with estate tax expertise to get a correct answer.