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Level 2
April 28, 2020
Question

medical expenses paid from a grantor trust

  • April 28, 2020
  • 1 reply
  • 10 views

grantors of a grantor trust are divorced parents. Trust pays medical expenses of the beneficiaries. Can one parent deduct 100% of medical expenses paid?

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1 reply

BobKamman
Level 15
April 28, 2020

I would start with the divorce decree.  To whom does it award the trust assets?  Or maybe this is a bifurcated case where the spouses are declared single, but the property settlement remains to be decided.  In that case, whose money went into the trust, and does the trust state that it is now owned by both?  

And who are the beneficiaries?  The grantors?

My guess is that you will end up with a 50/50 split.