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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Re: Can Trust pay taxes for beneficiary? Date: 1/9/2001 1:28 PM
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In order to meet Social Security credit requirements, we are investigating the possibility of hiring the beneficiary to perform a service, and to pay the beneficiary in income rather than disbursements (about 1/3rd of the total amount would be in income, the rest disbursements). The trust allows the trustee to have discretion over the amount to be distributed to the beneficiary, so it seems the distribution can be reduced without concern.

I'm no expert on trusts, so I can't really offer any guidance. I can tell you that the concept of having the beneficiary, in effect, hire himself in order to gin up SS credits fails my smell test. Whether that means anything or not is certainly debatable.

TMF ExRO
Phil Marti
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