Getting money out of a trust fund with out paying a lot in taxes?
Ok, so when i turn 18 (in 2 and a half weeks) i get about 50k inheritance money from a trust fund and i found out that to just get the money as a check, i would have to pay tons in taxes, (between 40 and 50%). Is there a better way to get the money and still be able to use it to help pay for my college tuition? I would really like to minimize the amount of taxes i would have to spend.
Its a trust fund with about 50k. the money was put in the trust fund by Metlife life insurance i think when my father passed away because there was no one to hold on to the money, i think is the reason. So as soon as i turn 18, they give it to me, but they want to know how i want to receive
- AnonymousLv 71 decade agoFavorite Answer
Who told you that?
Oh 17 year old man of wisdom, I don't think it's true. Life insurance money passes without inheritance taxes, if YOU are the beneficiary.
- Casey YLv 71 decade ago
You need to get your facts straight. You should know why the money is there, not think you know. Ask them exactly where the money came from and then re-post.
If it is life insurance and you were the beneficiary, it should pass tax free. However, if the estate was the beneficiary, taxes would apply.