I thought I understood several posts ago when I thought you told me that the fixed beneficiaries would have no participation in tax consequences which, in essence I would think, is all they really need to know in order to be able to finish their personal tax returns today, which they are clamoring to do. A lot of what you have replied since then, especially your last reply, makes me less sure that such is the case. I am not sure who you mean by "they". Although I have never seen a 1041 filled out, particularly for a simple instance like this, with only a capital loss and none of what I think of as income, nor ever received a K-1, I do have the trust document in front of me and it does say that distributions (actually of principal and income) will first go equally to those 3 fixed beneficiaries up to 150k in total. Are you still saying that means the K-1s for them should show no tax consequence, that all of the tax consequence will be shared between only the other 2, the variable beneficiaries? Thanks!
