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Do expenditures by a grantor trust made directly to an assisted living facility for the beneficiary count as distributions on the 1041-K? Or how are they reported?

Level 3
Trust paid the facility directly for room and board.
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3 Comments 3
Level 15

What's a 1041-K?

A grantor trust, by definition, is a nonentity for tax purposes. The grantor is treated as the owner. All income and deductions are reported on the grantor's tax return as if there was no trust.

Level 15

"What's a 1041-K?"

It's the new postcard version of the 1041.😅

Slava Ukraini!
Level 15

I always have to look it up but I think a grantor trust has to file a Form 1041 if the trustee is not the grantor (as in, the grantor new resides in the dementia ward).  But I don't think a Schedule K-1 is filed, there is just an attachment that tells the grantor what to show on his/her Form 1040.  Paying bills for the grantor's care, is the same as making distributions directly to the grantor.