Anything over $600 that’s deemed beneficial to you, the beneficiary. You can buy an RV, caravan or boat, sure. But be modest and don’t draw attention to yourself. Questions are going to be asked if you suddenly own a super yacht out of nowhere.
Remember, everything you buy becomes a responsibility and a liability so you have to think about how you’re going to maintain and manage your purchases in the future.
It’s our job as a trustee to make sure the funds are being spent wisely and in accordance with Trust Law. If you’re going to act like a lottery winner and go on a multi-million dollar spending spree, then we aren’t going to be a good fit for working together.
Here are some other ideas on what you can file a 1099-A for.
If there are any funds remaining after everyone has been paid, you can receive these directly as long as they are not in excess of 20% of the amount entered into Box 2 of the 1099-A form. These may be taxable but speak to a qualified professional about this.