Special Needs Trust definition of distribution to beneficiary

shakayee · ‎April 10, 2020

My disabled daughter has a special needs trust and I have recently taken over as trustee.

She does not qualify for rental assistance from programs such as HUD Section 8 as she rents from a close relative

The trust pays her rent to her landlord. Is this a distribution for Schedule K-1?

MarilynG1 · ‎April 10, 2020

Click this link for info on Special Disability Trusts that may help you.

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MarilynG1 · ‎April 10, 2020

You can file a Form 1041 for your daughter's disability trust through TurboTax Business.

Click this link for more info on reporting for a Qualified Disability Trust.

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shakayee · ‎April 10, 2020

Thank you. I am aware that I need to file a 1041 trust return. My question is specifically about the definition of a 'distribution' for schedule K-1 purposes. Any idea where I can get a definition of even some examples?

MarilynG1 · ‎April 10, 2020

Click this link for info on Special Disability Trusts that may help you.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

shakayee · ‎April 11, 2020

Thank you so much for finding this link - it answers my question and has examples

Special Needs Trust definition of distribution to beneficiary