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If a Trust exists solely to pay medical expenses of it's beneficiary and nothing else. Are those payments Disbursements (non-Taxable) Distributions (taxable)?
The Trust can pay either income or principal in order to cover the specific, documented medical expenses it's sole beneficiary and not for anything else. So are those payments, which are not for the beneficiary's indiscriminate use taxable to them?
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‎August 20, 2024
12:39 PM