My father died 2001. My mother just turned 100, advanced stages of Alzheimer. She lives with my brother. My brother and I are co Trustees. We just sold one of her houses and have the money in a trust bank account, My brother thinks we can distribute the proceeds from the sale to both of us. I'm not sure we can do that while she's still alive. Can we?
It's my understanding that any assets are handled just as if your mother is still alive, and it's only after death that the compressed tax rates apply.
I'm assuming title to the house is vested in the trust?
If the trust was for your parents, I don't see how you can distribute the proceeds to yourself; that would be an abuse of fiduciary obligations. If you two are the only beneficiaries after your mother's death, but the trust provides for distribution only after your mother's death, then you have to wait to be compliant.