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maglib
Level 10

Trustee Fee Deduction for a irrevocable grantor trust(IDGT)

So prior to 1/1/2000 many grantor trusts did not have to be called QDT nor SNT and still meet rules. It was only in 2000 that government ruled special wording for SSD and other government aid. 

  I found numerous people have trusts that are special needs types and as far as they knew it was only irrrevocable grantor trusts but, do have the wording in them that does not require income nor principal to be distributed.  So depending on the wording of a number of irrevocable grantor type trusts these fees may still be deductible.

Issue is though for SNT or these trusts how can income on the tax return be deducted if NO k-1 is needed and there is only a grantor information letter?  Turbotax has no ability to claim the reduction other than reducing income....  or filing a trust return and then reducing the taxable income to the personal return in a k-1?  

 

**I don't work for TT. Just trying to help. All the best.
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