Yes, I was the executor. The estate was closed 14 years ago. The lawyer who wrote the will pushed it through probate. The will says the bequest for my other aunt to be held in trust by me, for her benefit, for her life. Upon her death, the remnant of the estate is split between me and the animal rescue. The lawyer said his impression was the entire trust arrangement was to be informal. I did not want the funds mingled with mine, nor did I want to pay income tax on the several thousand dollars per year the money earned on bank CDs. So the money was kept segregated, I obtained a Federal tax ID number for the trust and I filed Federal and state 1041s every year since.
The exact wording says: “to be held in trust by my Personal Representative (me) for the benefit of my sister, Patricia, if they survive me. Upon completion of Personal Representative duties, Steven (me) is to continue as Trustee for the benefit of Patricia during her lifetime.” “Upon the death of Patricia, or if Patricia fails to survive me, I give 50% of her share to to my nephew Steven, and 50% to the Kalamazoo Animal Rescue, a Michigan non-profit corporation, Kalamazoo, Michigan”.
There are a couple CDs in the trust’s name remaining, which will mature within a few months. My intent is to, at that time, close the bank accounts, do a final accounting for the sum of the trust. Then, file “final” 2025 1041s for the trust.
I could pay out all the money in one gob, to the animal rescue, as soon as the last CD matures. Or, I could dump the money into my account, and keep an accounting of how much of that final total for the trust is paid out each year, and how much remains, so that I could enjoy the tax deductions, which would apparently knock some $35-40k off my AGI each year. I, of course, would have the “fun” of working out a prospective 1040, and AMT calculations, to see if it would work, but, I have done so many tax returns over the last 30 years, I think the peak was 7, for 1996, what’s one more?
Steve…paperwork is my life
