@mgranp
Parents can deduct wages paid to a child as a business expense only if the compensation is reasonable for the work performed. A parent is not required to pay minimum wage (an exception to the FLSA), but should pay a reasonable rate. It is highly advisable to document the hours that the child works and the type of services
If the parent is a sole proprietor or the company is a partnership in which each parent is a partner, any amount of wages paid to a child under age 18 is exempt from FICA and Medicare [IRC section 3121(b)(3)(A)]. Wages paid to a child under age 21 are exempt from federal unemployment tax [IRC section 3306(c)(5)]; however, these exemptions do not apply if the parent’s business is a corporation or a partnership wherein any partner is not a parent of the child.
notice that "trust" is not mentioned above. also, I don't know what CA rules are. so you can wait to see if there are clarifying responses otherwise check with a tax pro.
It is also likely that the Trust would have to file for an EIN (if it doesn't already have one) and file the required payroll tax returns. even if only to report wages. and at year end file a w-2 for her. I think that issuing a 1099-NEC would be inappropriate.
