My grandmother passed away several years ago, and left a generous trust fund to her 5 grand children. We can access our share of the money when either of the following two conditions are met:
- We turn 25
- We get married
Currently, all of my siblings and cousins have received their shares; only mine in currently held in trust (I believe I can refer to myself as the sole beneficiary at this point). I will turn 25 in 6 months time. However, the money was originally an some kind of managed financial fund (I don't know what, exactly), invested in the stock market. When the market tanked, my mother, the trustee, pulled the money out of the financial fund, and placed it in a (thankfully separate from everything else) personal investment account, in her name.
My share of the trust fund was, at its inception ~$25k; when it was pulled out of the financial fund, it was ~$10k, and is now ~$16k.
I know I will probably have to pay taxes on this money. My question is, at what point is/was the money considered mine, for tax purposes? When my grandmother passed away (and I was 9)? When it was removed from the financial fund (half a decade or more ago)? In six months, when I receive it?
Also, since the trust value has decreased, can I claim a loss against my income? If so, from what point to what point do I calculate the loss?