I am trustee for a Trust that allows for distribution of funds for health and/or education of beneficiaries. All of the income from trust (basically 1 rental property) and then some, was spent on health of one of the beneficiaries. (note: all beneficiaries are ok with this). Because of this no income was distributed. Also, I now need to accumulate funds for repairs that will likely be needed after current renter leaves this December. Can I expense repairs that have not happened yet I don't want to distribute funds during this year that I'll need for repairs in 2023.
@Smilllie wrote:
Can I expense repairs that have not happened yet
You cannot deduct repairs as an expense until the tax year in which the trust actually pays for the repairs.
see a lawyer. if the terms of the trust are not being complied with regarding distributions. even if the beneficiaries agree to this, there may be legal repercussions for the trustee in the future. usually, beneficiaries have no say in changing the trust provisions.
@Smilllie wrote:
...(note: all beneficiaries are ok with this)....
I agree with @Mike9241 assuming the governing document (the trust) does not contain any provision or provide discretion for unequal distributions.
What the beneficiaries are "OK with..." today might not be what they are "OK with..." tomorrow.
Consult with local legal counsel.