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1041 Beneficiaries - One is a trust for a minor

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    1041 Beneficiaries - One is a trust for a minor

    Estate 1041 - 5 beneficiaries on K-1's so the estate's income is taxed on their personal returns.

    Issue: One of the beneficiaries was a minor, so a separate trust was set up for him, and the funds went there. What is the best approach to handle this?

    (Using Drake)

    #2
    "What is the best approach to handle this?"

    I don't do many trusts, but I don't understand the question. If a trust is a beneficiary, then the K-1 should be issued to the trust, right? If an individual is a beneficiary, then the K-1 goes to them. What happens to the money after the individual receives it shouldn't matter.

    If you are looking for a "best" approach, that must mean you can see more than one, so maybe if you are more specific, you'll get better responses, or it will be determined that yours is a legal question, not a tax-specific question.

    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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