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Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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My son is the beneficiary of a complex trust established to

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My son is the beneficiary of a complex trust established to pay his higher education expenses. If I pay the tuition and other college expenses from the trust are these payments considered a distribution to him? If so, are they taxable income to him? I understand that he is responsible to pay via the K1 tax on income that the trust generates.

Hi and welcome to Just Answer!

If the tuition and other college expenses paid by the trust using corpus - that is not his taxable income.

Also if the trust has taxable income - generally the trustee has a choice - either the trust pays income taxes on that income or the taxable income is passed to beneficiaries or a combination of both.

The beneficiary is only responsible to include into his/her income taxable part of the distribution reported on K-1.

All other distributions are not taxable for beneficiaries.

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