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Irrevocable trusts and medical expenses Expand / Collapse
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Anonymous
Posted 2/25/2008 8:29:00 AM




If an irrevocable trust pays medical expenses on behalf of its beneficiary directly and these expenses are allocated to principal, should the schedule k-1 to the beneficary detail these expenses out to the beneficiary on a note to the k-1? Would the beneficicary be able to deduct these on their personal 1040?
Post #549
Posted 2/25/2008 9:25:12 PM


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Hello, Anonymous,

Answers are
no
and
no

Bill

Anonymous (2/25/2008)
If an irrevocable trust pays medical expenses on behalf of its beneficiary directly and these expenses are allocated to principal, should the schedule k-1 to the beneficary detail these expenses out to the beneficiary on a note to the k-1? Would the beneficicary be able to deduct these on their personal 1040?
Post #550
Posted 2/26/2008 9:36:19 AM
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Bill:

Would your answer change if they were taxed on those principal distributions? Perhaps if there were little or no income distributions, it could happen.

Mary Kay Foss

Post #553
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