Hi! I'm Trustee of my father's revocable Trust. At the time of his death in September 2010, assets amounted to about $1.5 million (mostly real estate). A beneficiary and her "friend" sued the Trust relentlessly, however, both cases have been dismissed as "frivolous and for no purpose other than harassment." Legal fees for defending the Trust were $325,000, and while in litigation, the Trust continued to pay mortgages, all utilities, and property taxes on his 3 properties. Consequently, cash reserves took a huge hit. In 2013, the court approved the distribution of 1 home to a beneficiary (per terms of the Trust). Currently, there is no longer cash reserves to pay off mortgages on the remaining homes, until one of the properties is sold. The "profit" from the sale will be less than $30,000. Federal and Illinois
Revocable Trust Tax Return Issues
Answers
Dear Anonymous, it's always dangerous to recommend tax related actions based on limited (and potentially incomplete) information. My first recommendation is that you seek assistance from a
THANK YOU! Your guidance and suggestions are very much appreciated.