I will soon receive a significant amount from a Crummey Trust. The trustee says I have a choice of taking the securities or having them cashed in and taking the cash. She says I will have to pay income tax on the significant realized gain if I take the cash. However she cautions me that no broker is likely to accept some of the securities. I have checked and that is true; none will take "HSBC Bank USA NA Tax Exempt Inc Fund".
So two questions...
1) Is that correct about having to pay taxes on realized gain if I take cash? I thought inheritances were tax free, but maybe a trust is different.
2) I left a voice mail asking if I can have her sell the single nontransferable security and then the other securities transferred, but haven't received a reply. Is there some reason reason that can't be done?
- posted 5 years ago