Client dies and has several non-qualified VAs for which their trust is the beneficiary.
If I report this income on form 1041 and the income is immediately distributed within the same tax year after fiduciary fees, accounting fees, etc., and I issue K-1s to each beneficiary in accordance with trust verbiage, will this avoid the 39.6% trust tax rate? (income will be well over $12,600).
Thanks in advance for insight. Not a trust guru and this isn't horribly complex I just want to be sure I am reporting this correctly.