I am the trustee of irrevocable trust for my nephew. He is the sole beneficiary of the trust. In 2019, he directed me to make a gift of $30,000 from his trust to his mother. This gift is from corpus (principal) and not income. Does the trust have to file a Form 709 gift tax return for this gift ? I don't think a Form K-1 has to be filed, because no income was transferred.
