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Do expenditures by a grantor trust made directly to an assisted living facility for the beneficiary count as distributions on the 1041-K? Or how are they reported?

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Level 2
Trust paid the facility directly for room and board.
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Level 15

What's a 1041-K?

A grantor trust, by definition, is a nonentity for tax purposes. The grantor is treated as the owner. All income and deductions are reported on the grantor's tax return as if there was no trust.


ex-AllStar
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Level 15

"What's a 1041-K?"

It's the new postcard version of the 1041.😅

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
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Level 11

I always have to look it up but I think a grantor trust has to file a Form 1041 if the trustee is not the grantor (as in, the grantor new resides in the dementia ward).  But I don't think a Schedule K-1 is filed, there is just an attachment that tells the grantor what to show on his/her Form 1040.  Paying bills for the grantor's care, is the same as making distributions directly to the grantor.