Thanks for helping! And yes, as trustee, I was required to obtain an EIN for the trust so that I could administer its finances.
Yes—there is confusing info out there about whether this is a "grantor" trust. (It almost seems as if tax software and other pubs are unaware of the ramifications of an "income-only" trust!)
The trust actually terms Mom as the "grantor." She has agreed to deed her farm into this irrevocable, income-only trust (for Medicaid planning purposes); the "income-only" provision was intended by the attorney preparing the document to allow me as the trustee to pass this money on to Mom, while she retains no right to the principal or any other proceeds. I as trustee and her descendants are termed beneficiaries. I'm not making any distributions to myself or our children at present; I'm only needing at present to pass the rent money on to Mom for her to live on.
Turbotax has me a little confused on this point; do I have to name Mom (the Grantor) as a "beneficiary" in order to pass the rent money through to her via a K-1? I'm working it different ways to see if I can make it come out right.
I appreciate the link to a Kentucky "Fiduciary" return—I hope that will be a little more intuitive, and that it will not require us to pay tax on what is essentially a wash.
If any of the above clarifies the situation, please let me know.
