Accounting Question (Estate Finance Family Tax Planning) 1. In 2001, Larry creates a trust with Ted as
Fantastic news! We've Found the answer you've been seeking!
Question:
Accounting Question (Estate Finance Family Tax Planning)
1. In 2001, Larry creates a trust with Ted as trustee. Ted (as trustee) may distribute income and principal to Susie, Jeff and Leon at his discretion to provide for their health, education, maintenance, and support. Upon Larry's death, the trust terminates and the remainder is distributed to Susie, Jeff and Leon in equal shares. In 2012, Larry dies. In 2012, the trust has $15,000 of interest and $15,000 of dividends. Additionally, the trust received $115,000 for the sale of an asset with a basis of $100,000. How much income does each of Jeff, Susie, Leon and the trust report for 2012 and why?
Posted Date: