Give each beneficiary a full copy of trust tax return?

The trustee's attorney wants to give each beneficiary complete copies of the trust tax returns. The trustee wants to know if I have a problem with this. One issue that I see is that it includes K-1 data for the other beneficiaries. Even with SSN's masked, tax data will be revealed. The beneficiaries have not consented to share that data. It also makes me a little uneasy that the attorney might be trying to use the trust tax return as a substitute for an accounting---which of course, it is not. Maybe I am over thinking this, but the trustee and the other beneficiares are not on cordial terms, so I want to tread carefully. Do you typically give complete copies of trust returns to all beneficiaries? Other issues I am missing?

The trustee's attorney wants to give each beneficiary complete copies of the trust tax returns. The trustee wants to know if I have a problem with this.

I don't see where it involves you, once you provide a complete copy of the prepared return for signature to the fiduciary.

I would send him a masked copy. He seems to want transparency in the trust. Seems legit to me. The accounting should have been done before the return was done.

1. After you remind attorney he is supplying adverse parties with social security numbers you are off the hook.
2. Tax information for all can most likely be derived from a single k-1 and knowledge of the will. In addition all are entitled to ask for an accounting which will include tax information.
3. All tax preparers involved will have the opportunity to criticize your work or learn from your expertise...♫

Thanks, all. This is helpful.

Makbo, I am involved because the trustee has asked for my opinion on this. Otherwise, I would agree that this is up to the trustee and her attorney.

My initial opinion---given to the trustee before this issue came up---is that they do a formal accounting. There are adverse parties involved, and some of the beneficiaries have already raised questions about the level of expenditures. The attorney does not feel an accounting is needed and they will not be doing one.

Discussing this with the attorney is not an option. He does not respond to my phone or email messages. My only communication with him is through the trustee.

Dennis, I think you are right. I will ask the trustee to remind the attorney he would be providing adverse parties with SSN's. I will offer to provide a masked copy of the returns in lieu of what they have now. And I will stop worrying about it.

Makbo, I am involved because the trustee has asked for my opinion on this. Otherwise, I would agree that this is up to the trustee and her attorney.

I am simply suggesting that this sounds dangerously close to providing legal advice.

I've been trustee since 2016. The beneficiaries do not like me. I don't take a deep breath without checking with my attorney. I provided the beneficiaries with a complete copy of the estate tax return, SSNs masked. I have not been instructed to provide anyone with a copy of the trust tax returns.

I absolutely would not send them out from my office. I would provide two returns to the trustee: a complete copy and a copy with SSNs masked. The trustee can send them out after discussing the issue with the attorney. I would not provide any instruction or commentary on the issue. The trustee's responsibility to provide the returns or liability for disclosing confidential tax information is a legal issue, not for you to take on.