I inherited a small house in Florida from my parents and would like to sell it and then take the money and open an IRA or trust fund for my adult daughter. Would either one of us have to pay taxes on the money if I put the money in an IRA or trust fund for her? We both live in Wisconsin.
1 Answer from Attorneys
This is not a question which can be answered by email because there are so many items which could change the answer to your question. But more or less you can setup a trust for the benefit of your daughter and add money into that trust. If there are taxes due to Florida on the inheritance, that's a different question not related to what you can do with the net proceeds of sale after the money is in your bank account. Depending on the amount, and the type of trust, and other items, someone has to pay income tax if the money in the trust earns income, dividends and interest, for example. There may be gift taxes payable, as "a small house in Florida" could be worth 15 million dollars. There are lots of rules regarding IRA's and almost certainly you cannot setup an IRA for your adult daughter. But a trust is a great idea.