Question regarding life insurance policy
Hi Tax Guru,
I don't generally prepare 1041 returns, but a friend really wanted my help. I don't want to steer her wrong, and I have a question regarding a 1099R they received and all my research has provided few clues. My friend's father had a living trust (no spouse) and he passed away in 2007. As trustee, she filed for an EIN for the trust. She received a 1099R from a life insurance company with a taxable portion of the distribution and the recipient's ID# is her father's SS#. The policy was in the name of the father's living trust, which now has its own EIN. Don't I report this income on the 1041? If so, how do I address the issue of the recipient ID # being different from the trust's ID#? Any guidance would be greatly appreciated.
Thanks for being a great resource!