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Updated almost 7 years ago on . Most recent reply presented by

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Daniel Miller
  • Fremont, CA
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Dad had Living Trust, I am trustee, he died, I'm confused...

Daniel Miller
  • Fremont, CA
Posted

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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Eamonn McElroy#5 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • Atlanta, GA
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Eamonn McElroy#5 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • Atlanta, GA
Replied

@Daniel Miller

"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.

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