What should I know about paying taxes on a family trust?

Answer by  working (311)

Generally speaking you will need to complete a K1 form for the trust which will assist in calculating the amount of tax associated with the trust.

Answer by  Att4372 (1704)

You need form 706, which you can get from the IRS web site. You should also get tax software to fill out this form, or get professional assistance. Depending on the type of trust, income is taxable to the trust or the beneficiaries or the trust creator.

Answer by  LegalGirl (183)

A few things you should know before attempting any legal action. You should consult a lawyer and make sure you're knowledgeable about the laws and statues in your area. Good-luck.