GRANTOR TAX INFORMATION LETTER

[Anonymous]

Hi, 

My wife's grandparent set up a trust for her 30 years ago. The grandparent has passed away since then. My wife is the beneficiary, but don't have access to the full amount in the trust until she turns 35. My wife gets a package every year for tax filing. I have no problem filing the k-1 in there with TurboTax Premier. However, there is a GRANTOR TAX INFORMATION (GTI) LETTER in the package. If I understand it correctly,  the grantor of the trust is her grandparent which has passed away. My wife is the beneficiary who only get small amount of dividends from he trust every year. Should we do anything with the GTI letter?

[Anonymous_ · Accepted solution]

This is probably a partial grantor trust if she receives a GIS in her name and social security number.

Enter the information from the grantor information statement as you would any other. For example, enter the amount of dividends as dividends received (the same as if you received a 1099-DIV).

[Anonymous]

We were just looking at the original document that created the trust. No where in there indicate my wife is the grantor. Then only trustee is the bank. The grantor letter indicated asset transaction that s created by the trust. My wife got a k1, which is expected but we are surprised by the grantor letter. Is there any chance that the letter is generated for reference only even through my wife s name is in there?