Tax Prep by Deb Posted March 25, 2010 Report Share Posted March 25, 2010 I have a client who passed away the 2 of December 2009. She had a trust I believe it was a revokable trust. Prior to her death all income from all sources was reported on her personal tax return not involving the trust at all. When she passed away the only thing she had to pass on to her heirs was the proceeds from an annuity. To receive the funds her grand-daughter (one of the trustees)applied for a FEIN number for the trust. The trust will not receive the funds until this year 2010. How do I file my clients return. Do I go ahead and file the usual 1040 and have the grand-daughter sign, or do I need to start the trust return as of 2009? Nothing fancy, social security, and distributions from the annuity. She basically will have no taxable income if filing a 1040, and I haven't a clue about the 1041 as I have never filed one of these before. I would appreciate anyones thoughts on this one. Thanks in advance! Deb! Quote Link to comment Share on other sites More sharing options...
baystorm Posted March 26, 2010 Report Share Posted March 26, 2010 Whomever is the executor of the last will and testament would sign the personal tax return form 1040. This is a person who would have to be appointed by the local probate court. Even though the decedent had a trust, they more than likely also had a Will. If Will can not be found, then the granddaughter can petition the local court to be appointed the executor. Also look at Form 56 good luck Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 28, 2010 Report Share Posted March 28, 2010 I'm going to go out on a limb here. I think it would be to your best interest to try to obtain the documentation surrounding the trust. Those documents may very well outline the taxation of the trust as well as what happens upon death. I agree with the previous response, the executor is the one who can initiate this and it ultimately responsible for filing any and all tax and legal documents on behalf of the estate. You might consider filing an extension of the deceased's final return to allow for some additonal time to obtain the documents and research this. Good Luck! Quote Link to comment Share on other sites More sharing options...
jainen Posted March 28, 2010 Report Share Posted March 28, 2010 >>out on a limb here... obtain the documentation surrounding the trust<< That's not a limb, Terry. That's the base. In my opinion, all decisions start with the trust documents. Generally, if no executor is named in the will, the return can be signed and filed by anyone who knows the circumstances and is acting as a personal representative in charge of the decedent's property. If the trust had no undistributed income, you can probably skip the 1041 and just report any earnings on the heir's individual return. So basically anybody can file. But claiming a refund is a bit more complicated. Follow the instructions in Pub 559. Quote Link to comment Share on other sites More sharing options...
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