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    pbsaver11's Avatar
    pbsaver11 Posts: 2, Reputation: 1
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    #1

    Feb 10, 2013, 12:12 PM
    Taxes on Inherited Money
    I live in Michigan. My Daughter is 6 and has getting ready to receive $70K in an inherited money from her Aunt's trust she setup for the neices and nephews.

    Do I have to pay any taxes on this money if it is placed in a Michigan
    Education Trust?


    Do I have to pay taxes on it when distributed for a child's education?
    pbsaver11's Avatar
    pbsaver11 Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Feb 10, 2013, 12:13 PM
    Reply sample. What is the tax rate in Michigan, if we do haved to pay taxes on money from a trust given to a 6 year old for college expenses?
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
    		  
    #3

    Feb 10, 2013, 12:29 PM
    The trustee will tell you if any distributions from a trust are taxable. They probably are not, or are minimal. And when spent on tuition, no, not taxed either.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 10, 2013, 12:33 PM
    Agreed, but the details are such that you SHOULD consult with a local tax professional to make sure there are no Michigan tax issues.
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