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March 17, 2021
Question

Special Need Trust is only made up of gifts to the person. Does his administer report the stock sales under the special needs person?

  • March 17, 2021
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    Employee
    March 17, 2021

    "Does his administer report the stock sales under the special needs person?"

     

    If the trust is a grantor trust, then the trustee has options (see the link below).

     

    https://www.irs.gov/instructions/i1041#idm140229121376672

     

    Otherwise, for many third-party SNTs a Form 1041 is prepared and a K-1 issued.

     

    You might want to seek guidance from a local tax professional for this matter.