Trust Question

[Terry D EA]

My client passed away Aug 31, 2021. A revocable trust was created in 2015. My client never informed me they had a trust. While I know this trust is considered a Grantor Trust and does not pay any tax. I have asked the fiduciary/trustee if an EIN was applied for. If it wasn't, it appears things become fairly simple. I can only assume (dangerous thing) that the Option 1 filing method has been used each year. If an EIN was not applied for or granted for the trust, does the trust just automatically terminate and no filing is required? I know the trust itself becomes irrevocable upon death. Should the trustee apply for an EIN, file a final zero 1041? I don't have any information regarding which assets are or were placed in the trust or even if it matters at this point. I did tell the trustee(s) to contact the law office that created the trust for their guidance. 

I am just now getting the documentation to file the decedent's personal return which no extension was filed. The trustee(s) contacted me in January, and we spoke regarding what needed to be done but I heard nothing and assumed they had taken care of this through other means. Of course, I was wrong. I don't think any of this will have an impact on the decedent's final return. Any advice is appreciated.

[Abby Normal]

I only learned recently that these revocable trusts were supposed to file a perfunctory return noting that all the income was on the 1040, and I don't think the IRS really cares about returns that do not provide any revenue for the government.

If any of the financial accounts have the trust's name on them, then surely there is an EIN.

I would just start trust returns as of the date of death and consider whether it makes sense to elect to file the estate and trust as one, until the estate is closed.

[mcbreck]

If there are no assets in the trust at the time of death, there is no need to file a return as there is no taxable income. There would be no need to get an EIN. Many people generate trusts and never title assets under it so it's a complete non-factor. It is possible that the trust was funded via beneficiary forms (ira).