Inheritance question?

Question

My father passed away in Nov 2006. He left behind a large estate, all of which is within a trust. Most of it will not be distributed until my step mother passes. Let me say that there are no legal issues or tax issues. My father stipulated in his Will if anyone contested the Will they would be disinherited. There should be no tax issues, my father was a CPA and very much on top of things.

There was a large sum I would get before step mom passes. I have received half of it ( took 11 mo.) and am still waiting for the other half. My question~the trustee said that the reason we only got half was because they needed to file the taxes and wanted to be sure that it would all go through without a hitch before distributing the final amount. The taxes were filed in Jan. We still have not received the other half. I talked to them recently,they said that we had reached the 6 mo. mark so maybe we would hear soon. They said they need a closing letter from IRS.Does anyone know if this sounds right?

Answer 1

Yes, it does.  The trustee is making sure that there are no outstanding estate taxes of which the trustee is unaware.  The trustee should not distribute the trust until all of the tax "stuff" is completed, both state and federal.

Answer 2

It sounds fishy to me.  My father in law also died in november of 2006, and things were settled to teh point his widow was able to sell the house before march, 2007.

I'd ask for a DATE when things will be "settled."