Allocate RMD distribution to Trust not Beneficiary

Forum|Forum|3 years ago
March 10, 2023
2 replies
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We are filing a first return for a Special Needs Trust. The trust received several RMDs from a deceased parent and taxes were withheld. I want the Trust to take the full distribution and pay the taxes as the beneficiary. There is no money going to an individual - it is all going to the Trust. I'm using Turbotax Business and I cannot figure out how to change the allocation from 0 to a beneficiary and 100% to the Trust. What am I missing?

TurboTax Business Windows

Anonymous_

Employee

I am in no way certain what you are trying to accomplish, but it should be a simple matter to avoid allocating any income to the beneficiary by not making a distribution to that beneficiary (i.e., indicate that the trust did not make distributions).

Did you, by any chance, indicate that the trust was a simple trust in the General Info>>>About Your Trust or Estate section?

normddAuthor

Thanks for the quick reply. Yes, I set it up as a simple trust.

I also have set up 0 on the Beneficiary's Allocation worksheet on the K-1 but on the 1041 shows the entire RMD as

but on the 1041 is shows 100% going to a Beneficiary not the Estate.

normddAuthor

My mistake was calling it a Simple Trust. It is a Qualified Disability Trust. That made things right.

Mike9241

an important question is what does the trust say about beneficiary distributions? if required then the minimum amount must go out on the k-1 to the beneficiary.