I have a grantor trust. The grantor died at the end of 2019. There is a little dividend Income and a $10 capital gain. Does the trust report the income or is it distributed to the beneficiaries to report on their returns? if so how do I make that happen on the input forms
Ask the people who sold them the living trust. While you are at it, ask why it's been more than a year and the assets haven't been distributed. Isn't that what they said would happen with probate?
No, I am not tryiing to show condescension or contempt for you. It's just a good example to point out to other clients who might be seeking a false sense of security from some document churned out by the word processor.
The trust became irrevocable when the grantor died. If an irrevocable trust has more than $100 income, it has to file a 1041. If the income was distributed to the beneficiaries during the year, it passes through to them on a Schedule K-1.
Were there other income-producing assets not in the trust? What happened to them? You may be able to combine the trust and estate assets into a single 1041, with a $600 exemption, but I always have to look that one up.