Discussion:TRUST INTEREST - SETTLEMENT LOSS

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Revision as of 22:40, 13 October 2007

Discussion Forum Index --> Advanced Tax Questions --> TRUST INTEREST - SETTLEMENT LOSS
Discussion Forum Index --> Tax Questions --> TRUST INTEREST - SETTLEMENT LOSS

Mikelim (talk|edits) said:

13 October 2007
As a result of some nasty infighting within the family, a client of mine lost his claim to the 1/3 interest in the family trust (Total value about $217K). In the settlement agreement, he also agreed to give up about $22K of executor fees which he was entitled to.

Are these losses deductible? The closest I can rationalize is that the family trust was a capital asset and the executor fees were a receivable due to him; thus they would receive capital loss treatment when he gave them up for zero consideration.

I can't seem to find anything else - can any of you trust experts enlighten me?

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