Why do some trusts issue a Sch K-1 for the beneficiaries, while others only a "Grantor tax information letter"?


Typically, the K-1 comes from trusts whose terms dictate distribution of earnings by the trust during the year. The K-1 information will flow right to the beneficiary tax return.

The second return you describe appears to retain its earnings, and let beneficiaries know about such activity as a reporting activity, but the trust itself would have filed the return, and paid the tax due from the trust itself.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.