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Updated about 6 years ago on . Most recent reply
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Dad had Living Trust, I am trustee, he died, I'm confused...
So I've already gotten one surprise in this adventure... I discovered that dad's Living Trust becomes an irrevocable trust upon his death. I've already gotten an EIN for the trust, but I'm really unclear on how I do his final taxes this year... the IRS site says I need to submit form 1041 for "trust-related income"... but what about the rest of his tax environment??
I've been doing his tax returns for 9 years now; the tax elements in his accounts have been:
1. medical expenses (especially the $9300/month for assisted living facility)
2. rental income for renting out his house
3. income from pension, social security
4. everything else
In the past, he had a revocable Living Trust, and all tax issues were handled using 1040 and his SSN.
Does *everything* now go on the 1041, or do I have to do two separate tax returns??
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- Atlanta, GA
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"And BTW, what would be the consequences, if any, if I just disregarded all this and filed the normal 1040 with 'person is deceased' checked, like I did when mother died?"
You would knowingly be preparing an incorrect 1040. Please don't do this.