"B" Trust paid the Yuge medical bill. Can the "A" trust owner deduct it? - Spidell

"B" Trust paid the Yuge medical bill. Can the "A" trust owner deduct it?

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Message Board "B" Trust paid the Yuge medical bill. Can the "A" trust owner deduct it?

  • This topic has 3 replies, 2 voices, and was last updated 5 days ago by Lynn Freer.
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    • #197621
      Doug Thorburn
      Participant

      Client paid $120,000 this year for medical expense portion of continuing care, all deductible in one lump sum. Only the funds were paid by the “B” trust, the irrevocable trust set up when her husband died long ago. Can this be deducted by her? The trust is allowed to pay 5% plus other items deemed necessary (the usual for such a trust), including medical costs. I think it could be “deemed” paid by her; if not, perhaps we can have her reimburse the trust for the medical expense paid and then deduct?

    • #197862
      Lynn Freer
      Participant

      Whether the trust pays or reimburses, the trust is paying so no deduction for the beneficiary.

    • #199180
      Doug Thorburn
      Participant

      I understand whether the trust pays or reimburses her, the expense cannot flow through to her and she can’t take the deduction. But what if SHE reimburses the TRUST for the medical payment, and does so this year? She has the funds to do that.

    • #199659
      Lynn Freer
      Participant

      I”m sorry I don’t know the answer to that. Maybe someone else does

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