Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-15-2017, 11:44 AM
Junior Member
 
Join Date: Apr 2017
Posts: 2
Can a trust issue a k1 to a subtrust?

The original trust was split upon the grantor's death. The trust is required to distribute all income. I received a k1 from the original trust listing my trust (one of the subtrust) as the beneficiary. I'm wondering if this is right. I'm doing a 1041 for my trust and plug the k1 into turbotax business to get a k1 listing myself as the beneficiary to use with my personal return. But, this k1 also has lower numbers then the one issued from original trust.

I'm thinking the k1 from the original trust should list me as the beneficiary, and not my trust.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-15-2017, 09:32 PM
Moderator
 
Join Date: Oct 2010
Posts: 4,835
Since you have an A-B trust, you'll need to split the trust into 2 trusts. Since A-B trust transfers are complex, you may need the help of an attorney. You'll need to review the part of the original trust agreement that contains the terms for your survivor's trust. After the death of the decedent, the trustee is required to obtain a tax identification number for each trust other than a grantor trust as defined in federal income tax laws. The Decedent?s Trust and any Marital Trust are irrevocable trusts and will each require a tax identification number. Each year, the trustee must file a fiduciary income tax return ,IRS Form 1041 ,for each irrevocable trust, providing a sch K-1 to each income beneficiary If you have a traditional trust, you need to review your original living trust agreement before you move to change it. Your spouse's death will change the way the trust's assets are distributed upon your death if your spouse was a beneficiary. You'll also need to decide who you want to name as a successor trustee if your spouse was one of the successors in the original agreement.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-15-2017, 10:13 PM
Junior Member
 
Join Date: Apr 2017
Posts: 2
Each trust has a tax I'd number and will file a 1041. My question is who should be listed as the beneficiary (in part 2 of the k1 form) of the final k1 from the original trust. I cannot figure out why it is my trust and not me personally. Since my trust is listed in part 2 of the the k1, I enter it on my trust's 1041, and generate a k1 from my trust to me. It just seems wrong to pay income from one part of the trust to another. I can spin it that way because that's how the k1 came to me, but it seems odd.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Family Tax Issue rachelfleury2015 Filing Requirements 0 03-22-2015 10:03 AM
Inheritance issue [email protected] Miscellaneous 4 04-21-2013 10:38 PM
inheritance issue gdproj Income 1 08-22-2012 07:29 PM
1099 Issue freebchgirl S-Corporation 0 03-28-2010 09:17 AM
Trust principal distributed free from trust taxnewbie Trusts and Gift Tax Returns 0 03-12-2009 12:44 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning