BobKamman
Level 15
04-26-2021
07:26 PM
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As the saying goes, 90% of the people with living trusts don't need one while 10% of the people needing a living trust, actually have one. Well, at least that's what I say when people ask about them. Of course, I say the same thing about annuities.
Are you ready to explain to the widow/trustee, how much higher the tax rates are on a 1041 than if she can report this on the final joint return? Maybe you can get by with letting it pass through on a K-1 as income "required to be distributed," even though it wasn't.