Help - The 1099-A Process

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Form 8888 and Form 56 for Trustees

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Maia Harris

The instructions for form 8888 states that the account must be in your name. "Technically" the funds can not be deposited into your Trustee's beneficiary account. 


My question: Since I have a beneficiary account can I add my Trustee as an authorized user to my account and have my Trustee take the money out? 

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Your trustee should fill out form 8888 it’s the trustee who is receiving the funds on behalf of the beneficiary and only this form if it is going to multiple people otherwise the 1199a is for singular use and the latter is for multiple 

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Glynis Sheppard
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Do I understand correctly that the account "is" in the name of the Benef. and the trustee is an authorized signer?
Also, can you give an example of "multiple people" please?

The person who receives the funds is the trustee they are the beneficiary of the account where the funds will be sent. If the trustee would like two or more trustees to receive the funds then they would fill out the form 8888 otherwise the trustee would fill out the form 1199a if it will be only one trustee receiving the funds. Do you follow me ?

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Lerin Dees
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You know your stuff!!👍🏾

So say if I were acting trustee to my strawman would that work? I am living he is fiction?? Or does it even make sense... If I was say a corporation, pink taco for ex. And pink taco is my business I'm CEO could that work me being representing Pt... Could I be trustee under that entity and bene as well?? Just in diff capacity?

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Maia Harris
Best Answer

Yes ALL Forms must be filled out and filed by your TRUSTEE. My question is how can it go to your Trustee's beneficiary account which is not in my name.

INSTRUCTIONS ON Form 8888: Account must be in your name. Don’t request a deposit of your refund to an account that isn’t in your name, such as your tax return preparer’s account. Although you may owe your tax return preparer a fee for preparing your return, don’t have any part of your refund deposited into the preparer’s account to pay the fee.


I was also wondering if form 56 needed to be filled out to establish the Beneficiary and Trustee relationship to by pass that instruction for the funds to go into your Trustee's account. Otherwise it won't hit the account and end up being processed as a check. 

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Maia Harris
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I found the answer to my question. Since I can't post the picture you can view and download how your Trustee should be filling out form 56 which is how the funds can be put in your Trustee's account when you use form 8888

https://jarrettrealtyinvestors.com/document/annotated-form-56-example/