Question for the Money Doctors
Question submitted on Feb 26, 2014.
QuestionIn December of 2013, my wife received a distribution of ~$70K from her deceased Father's trust based in Louisiana (effectively, the trust was dissolved, in that all the monies were divided and distributed to the respective receipents). Is this distribution of trust money to us considered income to my wife and I who are married filing joint living in Georgia?
Reading Georgia state tax laws, it appears you are taxed on income from a Lousiana trust if your are a Gerogia resident. You may want to contact a local CPA/PFS to be sure (www.findacpapfs.com).
To be clear, generally, distributions from the trust are not taxable your share of the income generated inside the trust may taxable at the Federal level. This of a CD at the bank. The cash you get from the CD is not taxable but the interest is. Income earned inside a trust is basically the same concept.
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