My client’s mom passed away in January 2019 and her house was sold for $750,000 in May 2019. The house was only asset mom owned and it was in the living trust. The Trust listed all of her 4 children as equal beneficiaries.
The Trust also indicated that $160,000 to be distributed to her 7 grand children and 5 other family members at the death and the remainder was to distributed equally to her 4 children.
Do I need to issue k-1 to everyone who received the money? or Should K-1 be prepared for 4 children only?
The $160,000 was to come from the sale of the house.