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My father died 2001. My mother just turned 100, advanced stages of Alzheimer. She lives with my brother. My brother and I are co Trustees. We just sold one of her houses and have the money in a trust bank account, My brother thinks we can distribute the proceeds from the sale to both of us. I'm not sure we can do that while she's still alive. Can we?

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Depends on the trust language and provisions and who the beneficiaries are.

It's my understanding that any assets are handled just as if your mother is still alive, and it's only after death that the compressed tax rates apply.

I'm assuming title to the house is vested in the trust?

If the trust was for your parents, I don't see how you can distribute the proceeds to yourself; that would be an abuse of fiduciary obligations. If you two are the only beneficiaries after your mother's death, but the trust provides for distribution only after your mother's death, then you have to wait to be compliant.
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Call the guy who does your taxes to. A huge distribution is a huge tax. If the Trust was set up for your mother and it is revocable, please don't think you can empty it and get mom on Medicaid... they frown on that.
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I would call the Attorney who set up the Trust and speak with him..
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