Trust fund

Please help! My grandfather died earlier this year and I was one of the beneficiaries on his trust. I just recieved a one time payment of my percentage of the trust. No federal taxes were withheld. How do I claim this on my income for 2008?

Harrisob,

I am sorry to hear of your family's loss.
I would guess your grandfather was a wise man.

Now some good news. You do not report your inheiritance. This is tax free to you.
However, you do need to report the gains this inheirtance generates.
Depending on the investments, the gains could be anyone or all of these:
- Interest
- Dividends
- Capital Gains

Start a family tradition and in the future, pass an inheirtance along to your heirs.