I spoke with the aunt and she said that all the tax on the IRA's is being paid by the children, not the grandchildren (my wife is one of the grandchildren) so there is no need to issue a K-1 to any of the grandchildren. Is this true? This seems like a super weird way of managing the trust to me, but honestly I'm not really sure what is normal. If my wife received funds from the trust, should it be required that she receive a K-1, even if the taxable amount is zero for some reason?
