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We did an Irrevocable Trust for Medicaid for my now deceased mother-in-law. I am trying to figure out if we need to file some type of tax return with the IRS.

The money put in to the Trust came directly from her regular checking account. This money can only be paid to the nursing home. It was her income from Social Security, her pension and VA Aide and Attendance. I already filed her 1040 IRS form and that was all "taxed" there. I would think there would not be any tax paid on the Trust. There was no income generated.

Has anyone ever had this specific situation?