SEC Fair fund

I recently received a check (dated 04/23/07) payable to my late mother. I'm assured by the family law firm that it belongs to the bypass trust funded by her death. But the
question I have is in regard to the tax consequences to that trust. The check is from Edward Jones, and is captioned "SEC FAIR Fund Distribution". There doesn't seem to have been a cover letter. My guess, from Internet research, is that this is part of a 2004 SEC settlement with Edward Jones in regard not properly allocating rebates of management fees from some "preferred" mutual funds. I think this goes to capital gains, as the accounts were liquidated some time after her death (and probably during the time when the trust was considered part of the estate code section 645.) Even so, I'm not sure how to report it. << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ------------------------------------------------------- >>
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