Irrevocable Income Diversion Trust Tax Question
I am the trustee of an Irrevocable Income Diversion Trust for my mother, in trust to the state of New Mexico Medicaid program. What are my tax obligations for her?
No income tax is deducted from her monthly retirement check into the trust. The IRS has been no help, and I am not able to use any of the trust money for a CPA. Obviously her medical costs exceed her income, but Medicaid technically picks these expenses. I don't think I have to file for the trust, but her personal retirement check seems to still count as income.