I was named in the Joinder Agreement to receive the remaining funds after the Beneficiary’s death. Why am I receiving a W-9 form? Will I owe taxes on this money?

November 13, 2020

Community Fund cannot provide tax advice, but you will receive tax-related documents from Community Fund and our Trustee as follows: First, before distributing the remaining trust funds to any individuals or charities named in the Joinder Agreement, Community Fund will send a blank W-9 form to each individual or charity. Please complete and sign the form and return it to Community Fund’s Administrative Office as promptly as possible. This is required for tax purposes, and we cannot distribute any funds until all signed W-9 forms have been submitted. Second, after the distribution checks are issued, you can expect to receive a K-1 tax document for the year in which the distribution was made. All tax documents are expected to be generated and mailed by March 15 for the prior calendar year, so you should receive the tax document by March 31. However, the timing of tax documents may differ for remainder distributions issued during the first 65 days of a calendar year (January 1 – March 6). At the discretion of our Trustee, those distributions may be treated as if made during the prior calendar year for tax purposes. This means that you could receive both a distribution check and a tax document between January 1 and March 31 of the same year. After you receive your K-1 tax document, if you have questions about whether you owe any taxes, please contact a tax preparer or attorney for assistance. Community Fund cannot tell you how much is owed or provide any other tax advice.