1041 K-1 Question

[Kram BergGold]

The wlll designated four 25% beneficiaries. It also said that a grandchild was to get $25,000. My thinking is the grandchild gets the $25,000 but does not get a K-1. Only the four 25% beni's get K-1 forms, correct?

[Uncle Sam]

1041 K-1 Question

Correct. But remember that the trust cannot take a tax deduction for that distribution. The grandchild is not a charity.

[Kram BergGold]

thanks

Thanks for the confirmation.

[Jiggers]

Is this a Trust or an Estate?

[Burke]

I don't think it matters but she mentioned a will and a specific bequest. That is subtracted from the total distributable assets of the estate when paid, and before equal distributions to the 4 beneficiaries or any trust set up. The specific bequest does not go on a K-1. The others are subject to the net income/loss of the estate/trust in the year distributions are made to them and they each get a K-1.