Margaret CPA in OH Posted July 31, 2015 Report Share Posted July 31, 2015 I am trustee on 8 sub-trusts from long time clients that passed away, the last in September 2013. One beneficiary is a UK resident. Her UK accountants are requiring a lot of information in order to prepare her UK return. I am not comfortable providing all that is asked as some relates to when the trusts were revocable and this beneficiary was not my client, the grantors were. They want to know:1. All capital gains incurred by the grandparent's trusts annually, from inception to the date that the assets were attributed to all the side trusts i.e. the capital gains in 2013 and prior years.2 .All distributions made from the grandparent's trusts to beneficiaries, in excess of income, since inception. No need to specify beneficiaries, only the distributions.3. Capital gains tax paid by the trustee in 2013 and prior years. Following that, I understand that the trustees elected for all income/gains to be taxed at beneficiary level and paid no capital gains tax at trust level.I have left a message with the attorney who drafted the trusts and with my liability insurer and am awaiting replies. Any thoughts here from the good folks here? It seems Circ. 230 would require confidentiality at least up to the point of funding of the individual sub-trusts but I can't find specific references. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted August 1, 2015 Author Report Share Posted August 1, 2015 How great that 33 folks have looked at this to date but not a single suggestion has been offered. KC? Your legal expertise would be appreciated. Those with intimate familiarity with Cir 230? The attorney has not yet responded to my call and email so I suspect is on vacation. Liability insurance folks say to ask an attorney but don't think I should/need to provide anything prior to this beneficiary's actual trust funding. Anyone? I am back from my vacation so I know this one will be contacting me again soon asking for answers. Thanks! Quote Link to comment Share on other sites More sharing options...
Lion EA Posted August 1, 2015 Report Share Posted August 1, 2015 Not having this situation, I have not researched. But, off the top of my head, I'd tell my client that she has copies of the trust returns that I have prepared for her that she can give to her personal preparer and suggest she give him a copy of the trust documents also. Remind her that your previous clients also received return copies, but that she will have to acquire them from the estate as you cannot provide information to a third-party without specific written/signed permission. I would probably suggest she work with the trust lawyer as well as the brokerage firm.I would offer her extra copies of returns you prepared for her at no additional cost, but not any returns or other information from prior clients. 1 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted August 1, 2015 Author Report Share Posted August 1, 2015 Thanks so much, Lion. She does have copies of HER trust returns for 2013 and 2014 in paper and electronic form and she has paper and electronic copies of the trust document. I was the trustee of the trusts and executor for the estates of the grandparents so of course have copies of all those returns. The estate was just under the federal filing requirement so only trust returns exist save the Ohio estate returns.I don't think she is entitled to copies of the grandparents' trust returns but have provided an extensive spreadsheet showing all income and payouts following the death of the second grandparent reconciling to the penny every account.Why would she contact the brokerage firm? I am fairly certain that they would not divulge information and, in fact, may no longer even have it as all accounts were closed as of March 2014. I think the best bet is the trust attorney and I do wish she would call me back! I will leave another message and may well suggest that the beneficiary contact her directly. They did meet at the service for the last grandparent at least.Thanks again! I am done with all these trusts in 3 more years but may well resign before then... 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted August 1, 2015 Report Share Posted August 1, 2015 (edited) I tend to tell clients to contact lawyers, brokers, etc., knowing that they answer to their own confidentiality rules and will tell my client about the same that I'm telling her -- that I can't give out info. Then they whine less to me. She needs to deal with the trust lawyer and maybe her grandparents' lawyer. This isn't your job. Edited August 1, 2015 by Lion EA 2 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted August 1, 2015 Author Report Share Posted August 1, 2015 Again, thanks for the supportive answer. The trust lawyer is the grandparents' lawyer so knows the whole story beginning to end. I warned this beneficiary that I might not be legally able to comply with all the requests but I really like having her contact the attorney! Have a great weekend! Quote Link to comment Share on other sites More sharing options...
Catherine Posted August 2, 2015 Report Share Posted August 2, 2015 Margaret -- I think a lot of us saw the post - but did not answer because we did not have anything to share but sympathy. Which is nice, but not useful. Lion has the best idea; have them talk to the attorneys. Getting the same "I can't tell you" offloads YOU from being "the bad guy who won't help us" - which all by itself should be useful to you.Good luck! 3 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted August 7, 2015 Report Share Posted August 7, 2015 Margaret, as Catherine said, I saw the post - but did not answer because I did not have anything to share but sympathy. But Lion did have an excellent answer, which I very much agree with. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted August 7, 2015 Author Report Share Posted August 7, 2015 Thanks for the sympathy, Catherine and others! I begin jury duty tomorrow for 'two weeks or until dismissed' and know it will be even more challenging trying to get answers and process that last return for 2 German citizens who finally got his ITIN last month. I really don't need this.So I will be in Boston again in September for a week and a wedding. Maybe we can have lunch again and I can see your new digs. Stay tuned!Hmm, the above should have been posted Sunday, somehow I goofed. Meanwhile, the attorney and I finally talked. Her advice was to provide the information from the irrevocable trust dates (grandfather July 2010, no cg, no tax; grandmother September 2013, small cg, no tax) and reiterate that, until the revocable trusts became irrevocable, beneficiary was only potential beneficiary and had no right to info prior. And she could call the attorney or engage a UK-US trust tax specialist and convince the trust attorney otherwise.Beneficiary is vacationing in Italy now so don't know when the fit will hit the shan!Once again, retirement looks better every day... 3 Quote Link to comment Share on other sites More sharing options...
Catherine Posted August 8, 2015 Report Share Posted August 8, 2015 Don't forget to check out the "Fully Informed Jury Association" (fija dot org) for excellent info on juries and their rights, responsibilities, duties, and privileges. Those are significantly more substantial than judges and lawyers want you to know.Would LOVE to see you in Boston in Sept! 1 Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted August 9, 2015 Author Report Share Posted August 9, 2015 Thanks for the link, Catherine. I will definitely check it out. Meanwhile, I was excused Wednesday until Thursday, Thursday until Friday, Friday until Monday but have to check in again at 4 pm Monday. I was called once when living in Boston and loved the idea of one trial, one day. This method is, well, nuts! I may yet be put on a jury next week for up to an indefinite time. Well, my civic duty...I will let you know more about Boston as time gets closer. Somewhere between 16-22, wedding is the 19th. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted August 10, 2015 Report Share Posted August 10, 2015 Thanks for the information about the fully informed jury association, Catherine. That was interesting and informative! 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted August 10, 2015 Report Share Posted August 10, 2015 Thanks for the information about the fully informed jury association, Catherine. That was interesting and informative! The whole topic of the privileges and powers of juries is fascinating once you give it more than the most cursory of looks. Glad you found it informative! Quote Link to comment Share on other sites More sharing options...
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