My father-in-law is creating non-grantor irrevocable trusts for each of his children. My mother-in-law will be the trustee. They would like all of the earnings from the trust to be distributed to the beneficiaries each year so that the beneficiaries are fully responsible for all taxes on trust income. They said we will get a K-1 for my wife in early 2026 for income distributed in 2025. How does this work? Does the financial institution where the trust is held send us the K-1? Or does my mother-in-law (the trustee) fill out a K-1 herself and send it to us?
Statistics: Posted by MIZCHI — Mon Jan 20, 2025 3:42 pm — Replies 4 — Views 267