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Simple English definitions for legal terms

taxable distribution

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A quick definition of taxable distribution:

A taxable distribution is when money or property is given from a trust to a person who is skipping a generation (like a grandchild) and it is not considered a direct gift or a taxable end. This means that the person receiving the gift may have to pay taxes on it.

A more thorough explanation:

TAXABLE DISTRIBUTION

A taxable distribution is a transfer of assets from a trust to a beneficiary that is subject to taxation. This type of transfer is not considered a direct skip or a taxable termination. It is typically associated with generation-skipping transfers, which are transfers of assets to a skip person (i.e., a beneficiary who is two or more generations younger than the grantor).

Example 1: A grandfather establishes a trust for his grandchildren. The trust is designed to provide income to the grandchildren for their lifetimes, with the remaining assets passing to their children (i.e., the great-grandchildren). When one of the grandchildren dies, the trust distributes a portion of the assets to their child. This distribution is considered a taxable distribution because it is a generation-skipping transfer to a skip person.

Example 2: A father establishes a trust for his son, with the assets passing to his grandson upon the son's death. When the son dies, the trust distributes the assets to the grandson. This distribution is not considered a taxable distribution because it is not a generation-skipping transfer. The grandson is not a skip person because he is only one generation younger than the grantor.

A taxable distribution is a transfer of assets from a trust to a skip person that is subject to taxation. This type of transfer is not considered a direct skip or a taxable termination. The examples illustrate how a distribution from a trust can be considered taxable or non-taxable depending on whether it is a generation-skipping transfer to a skip person. In Example 1, the distribution to the grandchild's child is a generation-skipping transfer to a skip person, making it taxable. In Example 2, the distribution to the grandson is not a generation-skipping transfer, making it non-taxable.

taxable cost | taxable gift

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RoaldDahl
16:15
So if it means nothing does that mean something?
HopefullyInLawSchool
16:17
Possibly
RoaldDahl
16:26
Cool
RoaldDahl
16:26
thank you!!!! i hope it means something
pinkandblue
16:31
fart
IrishDinosaur
16:36
Mich R gang lesgooo
Did anyone else get that random get to know nova email?
HopefullyInLawSchool
17:21
Ya it was sent to all YM applicants
starfishies
17:37
Anyone get the NDLS email inviting you to apply for something even though they haven’t made a decision on your app yet
17:38
Better yet I got the email and I was rejected last month
starfishies
17:38
Wtf
starfishies
17:39
and the deadline is in like a week what is this
any cardozo movement?
BatmanBeyond
18:01
Sent a LOCI via portal, but I'm wondering if email would have gotten me a swifter response
BatmanBeyond
18:02
This whole hold/wait-list/reserve system is a headache
loci already?
BatmanBeyond
18:09
If the odds are like 1-2% I don't think it matters much by the numbers
12:11
I got the same NDLS email
OrangeThing
12:18
I think the user profiles are broken
19:29
Any word out of Notre Dame?
19:29
Only the invitation to apply for LSE
19:29
Anyone received a decision from NDLS?
19:50
when did u guys apply that just heard from umich? they havent even glanced at my app yet
0:30
how am i supposed to spy on people when profile links are broken?
Right. Broken links smh
I've been UR since first/second week of Jan, no updates otherwise, is that a bad sign? At or above median LSAT and above 75th gpa.
The profile links are not working for me. anybody else?
13:18
i’m in the same boat mastermonkey but with lower stats. i hope i hear back by mid march
CheeseIsMyLoveLanguage
13:24
@mastermonkey45: Looking at some of the recent decisions in relation to when they went complete, I'd say it's a good sign. It seems many declines were sent within about 5-6 weeks of completion. Given those were applications that were SENT in January, I'd say that means you're still solidly in the running. :)
14:30
Sent an app to OSU in early december and have STILL not heard back
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