sjrcpa
Level 15

1. It's not a gift. The initial transfer to the trust by the settlor was a gift to the beneficiary(ies).

2. Income tax wise, a distribution is only taxable and will only appear on the K-1 to the extent of Distributable Net Income of the trust. The income distribution deduction is calculated on page 2 of the 1041.


The more I know the more I don’t know.