But can wife take deduction for payment paid by trust?. That's the idea of a constructive payment. Lots written on constructive receipt and constructive payment. And, while not involving a trust, check out the
Judith Lang case in which mother paid a medical expense of her adult daughter (who was not a dependent and for which she had no obligation to pay). Here's an excerpt.
Applying substance over form, we treat petitioner as having received from her mother a gift of $24,559 with which petitioner paid her own medical expenses. Petitioner should be credited with having made the payments for purposes of the income tax deduction in question.
. Plus payment directly to the medical provider avoids gift treatment for gift tax purposes.
But if husband is deceased, how can a medical deduction be taken unless it's in the same tax year?. Trust paid it, not husband.