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Charity as a residual beneficiary of a trust

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Level 1

A trust 1041 has a charity listed as a 20% beneficiary, 80% to one other beneficiary. This year there is interest, dividend and IRA income (the IRA had trust named as beneficiary). Distributions were made to the beneficiaries.  Does the charity get a K-1? On the surface it does not seem as if this is a charitable deduction for the Trust as the charity is a named ongoing beneficiary but I am not certain if a charity can receive a K-1.

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Level 15

I would issue the charity a K-1. I agree it is not a charitable contribution.

I have plenty of charity clients that receive K-1s from trusts and estates

However, I do believe some disagree with the K-1 approach. There was a thread about this on the forum a while ago but i cannot find it.


ex-AllStar

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Level 15

I would issue the charity a K-1. I agree it is not a charitable contribution.

I have plenty of charity clients that receive K-1s from trusts and estates

However, I do believe some disagree with the K-1 approach. There was a thread about this on the forum a while ago but i cannot find it.


ex-AllStar

View solution in original post