Report an irrevocable trust in Schedule A if you, your spouse, or your dependent child has a vested beneficial interest in the trust or has received distributions from the trust. In addition, report any trustee fees that you or your spouse received in Schedule A. You do not need to report the underlying assets of an irrevocable trust if: (1) you do not have a vested beneficial interest in the trust and have received no distributions from the trust and (2) neither your spouse nor your dependent child has a vested beneficial interest in the trust or has received distributions from the trust. There are various types of trusts, and trusts are governed by state law. This guide addresses the most common situations involving trusts. If the nature of your trust is such that you believe it may not be reportable or that an exception to certain disclosure requirements may apply, you will need to work with your agency’s ethics official in order to receive individualized guidance on reporting your trust. Some variations of trusts are discussed in the Frequently Asked Questions section below. For You, Your Spouse, and Your Dependent ChildrenSchedule AReporting a Vested Beneficial InterestReport a vested beneficial interest in an irrevocable trust if the interest was worth more than $1,000 at the end of the reporting period, or if the interest produced more than $200 in income during the reporting period. In addition, report each underlying asset of the trust that individually was worth more than $1,000 at the end of the reporting period or that individually produced more than $200 in income during the reporting period. You must report the underlying assets of the trust even if you are not an income beneficiary and hold only a remainder interest in the trust following the death of an income beneficiary. This guide contains specific instructions for each type of underlying asset that you hold. For example, this guide contains instructions for mutual funds, exchange-traded funds, stocks, corporate bonds, cash deposit accounts such as certificates of deposit, and other financial instruments. Reporting DistributionsIf distributions from an irrevocable trust totaled more than $200 during the reporting period, report the trust and its underlying assets using the guidance in the section above. You need to provide this information regardless of whether you, your spouse, or a dependent child has a vested beneficial interest. If applicable, you may indicate in Block A that the trust is simply a source of distributions and that no vested beneficial interest exists, but this information is not required. Excepted TrustsIf you do not have a right to receive information regarding the underlying assets of a trust that someone else established for your benefit, you might be able to rely on a partial exception for “excepted trusts.” Click here for more information on reporting an excepted trust. Reporting Fees for Service as TrusteeReport the source and amount of fees that you received for services as a trustee during the reporting period if the amount was more than $200. Report the source of fees that your spouse received if the amount was more than $1,000. Block A: Provide the name of the trust. For a family trust, you may use initials in lieu of a person’s name (e.g., “2003 J.S. Trust”) or simply refer to the entity as a family trust (e.g., “family trust #1”). Block C: For any fees you received, write “trustee fees” in the “Other Income” column and provide the exact amount of fees you received during the reporting period. For any fees that your spouse received, simply write “spouse’s trustee fees.” Do not provide the amount of fees that your spouse received. Click Here for Frequently Asked Questions
This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.