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Thank you for your reply. I was thinking that the same rules may apply to the trust as an individual. Wanted to be sure.
Technically, beneficiaries of a trust receive distributions from the trust which are not actually considered "gifts" as that term is used by the IRS, Internal Revenue Code, and Treasury Regulations.
The distributions can either be taxable (e.g., taxable interest, dividends, gains) or non-taxable (e.g., trust principal or corpus).
You should always check with the fiduciary of the trust (the trustee or administrator) to be certain. Generally, beneficiaries receive K-1s which, among other things, report income taxable to the beneficiaries.
Thank you for your reply. I was thinking that the same rules may apply to the trust as an individual. Wanted to be sure.
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