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Question

Benificiary from Special needs trust

Forum|Forum|1 year ago
February 9, 2025
1 reply
0 views

My brother in law passed away in Dec 2023. He had a special needs trust. We received the capital gains 1099B. We closed out the trust in March 2024. We saved money for the capital gains to pay. We transferred the remaining principal to his other brother who also has a special need trust. Who do I say is the beneficiary when I do 2024 taxes to close out the trust? Is it my brother in law that passed away or is it the other brother who inherited the trust?

TurboTax Business Windows

Most likely the other brother if that person is the successor beneficiary for the brother-in-law's SNT.

I don't think a K1 is needed for the new beneficiary since the trust paid all taxes. We are actually closing out the trust this month.

You're absolutely correct; it's not needed if the trust paid all of the tax due and is distributing corpus.