Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Trust funded by estate

Highlighted
Level 3

Deceased taxpayer funds a Health Trust for 21 beneficiaries. Complex Trust. Some beneficiaries have taken distributions for various health reasons. Initially, I set up the beneficiaries receiving the distributions as k-1 income to them but now realizing there is no trust income as the trust was just opened with $$ funded by the estate.

How in Lacerte to you show initial funding and do theses beneficiaries even get k-1's?  

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
Highlighted
Level 15

There is no place to indicate funding.

No income means no requirement to file. 

Since you have probably already paid for a 1041, you should probably go ahead and complete the return and charge the client. (Filing is a form of audit insurance, since the statute of limitations begins to run.) Beneficiaries that receive distribution will likely appreciate a k-1 that shows nothing needs to be claimed. 


ex-AllStar

View solution in original post

0 Cheers
2 Replies 2
Highlighted
Level 15

There is no place to indicate funding.

No income means no requirement to file. 

Since you have probably already paid for a 1041, you should probably go ahead and complete the return and charge the client. (Filing is a form of audit insurance, since the statute of limitations begins to run.) Beneficiaries that receive distribution will likely appreciate a k-1 that shows nothing needs to be claimed. 


ex-AllStar

View solution in original post

0 Cheers
Highlighted
Level 3
Thank you for your quick response.
0 Cheers