1115. Is a beneficiary of a trust operating a trade or business engaged in the trade or business?

A beneficiary of a trust that operates a trade or business is not engaged in the trade or business. This is because the trust rather than the beneficiary is engaged in the activity. However, a trade or business that is carried on by a conservator, committee, or guardian on behalf of an incompetent is considered as carried on by the incompetent. This is true even if the person has been legally adjudged as incompetent.

Business carried on by executors or administrators of deceased's estate.

Last Revised: March, 2001