Steve M Posted April 23, 2007 Report Share Posted April 23, 2007 A new client just handed me a stack of tax papers relating to her decendent trust. Her husband died 10 years ago and she has been filing 1041's for Trust 1 (decedent/residual) and her Trust 2 in her name for the past 10 years. No wheres does it say QTIP trust so I assume (maybe incorrectly) that this is a marital (A/B) trust. If so, shouldn't this have been dissolved years ago? At least the A portion? That s just her income- why would it be considered a trust? Is this a legal situation and should I refer her to an attorney? You thoughts would really be appreciated. I'm not sure about the proper way to file her returns. Steve M Quote Link to comment Share on other sites More sharing options...
Burke Posted April 23, 2007 Report Share Posted April 23, 2007 A new client just handed me a stack of tax papers relating to her decendent trust. Her husband died 10 years ago and she has been filing 1041's for Trust 1 (decedent/residual) and her Trust 2 in her name for the past 10 years. No wheres does it say QTIP trust so I assume (maybe incorrectly) that this is a marital (A/B) trust. If so, shouldn't this have been dissolved years ago? At least the A portion? That s just her income- why would it be considered a trust? Is this a legal situation and should I refer her to an attorney? You thoughts would really be appreciated. I'm not sure about the proper way to file her returns. Steve MShe has probably been doing the returns correctly. Usually, both trusts will terminate at her death, although there may be wording in each trust document that will tell you otherwise. You really need both trust documents (or the will from which they emanated if that is all there is) to tell for sure. Each trust probably has its own assets. One may be paying the income taxes, and the other's income may be flowing thru to the bene. Or not. Again, you need the trust documents to tell the details. Quote Link to comment Share on other sites More sharing options...
Steve M Posted April 24, 2007 Author Report Share Posted April 24, 2007 She has probably been doing the returns correctly. Usually, both trusts will terminate at her death, although there may be wording in each trust document that will tell you otherwise. You really need both trust documents (or the will from which they emanated if that is all there is) to tell for sure. Each trust probably has its own assets. One may be paying the income taxes, and the other's income may be flowing thru to the bene. Or not. Again, you need the trust documents to tell the details. Quote Link to comment Share on other sites More sharing options...
Steve M Posted April 24, 2007 Author Report Share Posted April 24, 2007 Thank you for your input. I appreciate it, and I agree that lookng at the documents is probably the best solution. Quote Link to comment Share on other sites More sharing options...
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