What is the beneficiarys responsibility for paying tax related to the individual trust account?
Income Tax: If the beneficiary owes income tax, he or she will be required to prepare and file an income tax return, as well as pay any income tax due. The Developmental Disabilities Endowment Fund (dba Life Opportunities Trust) will provide the primary representative with a completed IRS Schedule K-1 (Form 1041) showing the investment earnings to be included in the beneficiarys income tax calculation. Upon request, the Trust Manager will make a disbursement from the individual trust account to pay for taxes attributable to the account. Gift Tax: The beneficiary will not owe gift tax on contributions place in an individual trust account.
