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posted Jun 3, 2019 11:59:13 AM

I am the trustee of a Special Needs Trust as defined in 42 USC SS 1396p(d)(4)(C) as amended. What do I need to include in the 1041?

The 1041 asks for beneficiary info yet, the trust cannot distribute funds directly to the beneficiary

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Level 15
Jun 3, 2019 11:59:15 AM

" The 1041 asks for beneficiary info yet, the trust cannot distribute funds directly to the beneficiary"

Include the name of the beneficiary. 

You do not have to make a distribution to the named beneficiary if it is otherwise not required and you do not have to issue a K-1 since that it would be blank, anyway, if you do not make a distribution.

1 Replies
Level 15
Jun 3, 2019 11:59:15 AM

" The 1041 asks for beneficiary info yet, the trust cannot distribute funds directly to the beneficiary"

Include the name of the beneficiary. 

You do not have to make a distribution to the named beneficiary if it is otherwise not required and you do not have to issue a K-1 since that it would be blank, anyway, if you do not make a distribution.