Question: Do I have to issue a 1099-Misc for a trustee or executor fee paid by a trust or estate?
Answer: The reporting of Trustee fees by a trust on a Form 1099-Misc is not required. The 1099-Misc is for payment of services performed in a trade or business by people not treated as employees.
Trusts and estates are generally not treated as a “trade or business” and non-professional trustees are serving in a capacity that does not rise to the level of a “trade or business” activity for that individual. Therefore, we generally do not issue 1099s for executor or trustee fees.