New US resident, just received a large distribution from my family's foreign trust — how is it reported and taxed?
In my first year as a US tax resident, my parents' foreign trust (they funded it, not me) distributed about $300,000 to me to help buy a home. I assumed this was just a family gift. A CPA friend said trust distributions follow their own reporting rules, separate from gifts, and that bad paperwork could make most of it taxable. What form does this go on, and what records do I need from the trustee?
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