Say you have a revocable living trust that becomes irrevocable on the death of the grantor, and says that the post-death trustee is to distribute the trust's assets to some set of people in some set of proportions.
Further assume that all/the vast majority of the decedents assets were titled to his RLT.
I know that this will not reduce estate tax liability one iota, but I'm curious about the logistics of how the taxman makes sure he gets his cut.
Do the relevant federal and state laws block the trustee from transferring the trust assets to the beneficiaries until any tax due is paid? Or is the transfer allowed to happen as soon as the trustee wants to do it, but liability for the estate tax is placed on the trustee? Or on the beneficiaries? Or both?
-- Rich Carreiro snipped-for-privacy@rlcarr.com