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    Stephanie C's Avatar
    Stephanie C Posts: 1, Reputation: 1
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    #1

    Jul 3, 2012, 02:18 PM
    Final distribution of the principle trust assets
    I live in California and receive quarterly interest payments from a family trust and receive a K-1 at the end of the year because of those payments (interest that the trust generates). When there is a final distribution of the principle trust assets will there be tax consequences if this amount falls below the estate tax threshold? So I shouldn't receive a K-1 for the entire distribution, only for my share of the income generated during that tax year, am I correct?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 5, 2012, 01:23 PM
    The K-1 may show the whole distribution without any estate or Income TX being due.

    You nerd to
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jul 5, 2012, 01:29 PM
    You need to discuss this face-to-face sith a local tax pro (CPA or Enrolled Agent) to get advice based.on your ENTIRE financial situatiln.
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