This is not helpful.
You are suggesting that we try to fix a 'family trust' issue with a toxic environment. I was chosen as Trustee years ago to act as a neutral unbiased family member, Switzerland so to speak, and I have accomplished that. I have already consulted 2 attorneys, one who referred the estate that birthed the irrevocable Trust, and neither one recommends reopening this issue unless we want to spend alot of money, frustration, and pain for something that cannot be fixed. The attorneys 'know' the family dynamics are so negative that parties would rather burn it down then concede a small win to anyone. I agree, the management expenses are small compared to the other.
So I am going with my attorney's recommendation that I file Schedule F (Farmers return) show my Trustee income and then show the actual expenses on Schedule F as I have a receipt for everything. If questioned, we can quickly show that these farm management expenses generate substantial income for the pass-through trust which is reported on Schedule K for 6 beneficiaries. My expenses are not a 'hobby farm'. Do this until the Trust reaches its scheduled termination in a decade.
