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Trust and less available funds

nmm369
Level 1

Having an issue with distributions from a trust.

The total money available in a trust is now less than the amount to be distributed according to the trust documents. Now, interest has accrued for the past 4 years since the the trust was opened. Do the beneficiaries need to receive a 1099-INT for the amount that has accrued since then? And is that interest taxable to the beneficiaries? 

Thanks in advance. 

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3 Comments 3
BobKamman
Level 15

Has the trust filed Forms 1041 for the last 4 years?  Have their been distributions to the beneficiaries during that period?  Far from enough information here to figure out what's happening.  

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nmm369
Level 1

The trust filed its 1041, but no distributions have been made yet. Thanks 

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sjrcpa
Level 15

Beneficiaries get K-1s for their share of income, not 1099s.

Simple trust, complex trust?

How did you determine the amount to be distributed? How can it be more than what is in the trust?

The more I know, the more I don't know.