Message Font: Serif | Sans-Serif
No. of Recommendations: 0
i am trustee of a trust for the benefit of my sister. the main asset of the trust is the house my sister lives in.

in 2011, the heater went as the result of a lightning strike. my sister paid to fix it, and i filed an insurance claim on behalf of the trust. as a result, the trust received a $7,000 insurance payment, which i deposited into the trust account. thereafter i cut my sister a check for the $7,000 she spent out of pocket.

what do i do with the $7,000 on the 1041 i am filing for the trust? is it income to the trust and a distribution to my sister? if not, what is it?

thanks in advance,

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.