QUESTION 15 Julie is the beneficiary of a discretionary trust

Accounting Sep 10, 2020

QUESTION 15

Julie is the beneficiary of a discretionary trust. She is 20 years old. Last year, she received a $3,000 distribution from the trust. Julie had no other sources of income for the year.

Who is liable for tax on Julie's trust income?

Her parents

Julie

No one

Trustee of the trust

Expert Solution

Answer:

Julie is the beneficiary of a discretionary trust. She is 20 years old. Last year, she received a $3,000 distribution from the trust. Julie had no other sources of income for the year.

Trustee of the trust , Trustee Liable to file Form 1041 and pay taxes accordingly.

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