Underestimating value of estate to avoid taxes
My brother and I are estranged, but unfortunately my parents tied us together as 50/50 beneficiaries of their irrevocable trusts. They have passed away, and my brother as executor and his friend (as Trustee) significantly underestimated (and their freind assessed) the value of the estates way low. I refused to sign the evaluations (50 acres in area of Carlisle MA). The bank accounts and jewelry and antiques, my dad's tools were never accounted for. If I turn him into the IRS, (I just want to get disentangled and away from him) can they come after me for what he's done?
Re: Underestimating value of estate to avoid taxes
You may be safe from the IRS if it can be established that you are an "innocent co-owner" as defined under their regulations. That said however, it is probably not in your best interest to start that way. You are the beneficiary of a trust... an irrevocable trust... so you cannot dissolve the trust and simply take the assets. You are entitled to benefit from the trust and should the IRS decide to seize those assets, you will lose that benefit. You should speak with an attorney regarding your options and desired outcome.
