RobertB4444
Expert Alumni

Business & farm

It depends.  You are not required to issue K-1s to the beneficiaries - the trust can pay the taxes due and then you skip the K1s.  The trust usually has a higher tax rate than individuals do so most people don't want to do that.  But if it isn't a lot of money then you can avoid those K1s and thereby avoid a filing requirement.

 

@Osugradz 

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