Does K1 Dollars for Irrevocable Trust have to be Distributed? We have an irrevocable trust that generates income each year that we K1 to a beneficiary with the lowest tax bracket or effective taxes to reduce overall taxes paid. The question is does there actually have to be a transfer of funds to that individual or can they be kept in the trust? In other words can you K1 for tax purposes and leave the money in the trust? |