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My client inherited father's trust / estate & will receive income from the trust and his retirement - do I file 2 returns - 1040 individual (he & wife) and 1041 estate

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Level 1

My client inherited the family trust estate in 2018 which paid for his new house. The trust will continue to receive royalties and he will receive income from the estate but he will also receive income from his retirement accounts. Do I file a 1040 for him and his wife and a 1041 for the estate? 

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Level 10

If you ask this question in this manner, I think you need outside help. 

What is a trust estate? What paid for his house? 

There is a trust which receives royalties from where? If the trust has taxable income it probably needs a 1041. What assets are held in trust? What document established the trust, a trust agreement or a will?

If he has retirement assets personally then he might need to file a 1040.

** I'm still a champion... of the world! Even without The Lounge.

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Level 10

If you ask this question in this manner, I think you need outside help. 

What is a trust estate? What paid for his house? 

There is a trust which receives royalties from where? If the trust has taxable income it probably needs a 1041. What assets are held in trust? What document established the trust, a trust agreement or a will?

If he has retirement assets personally then he might need to file a 1040.

** I'm still a champion... of the world! Even without The Lounge.

View solution in original post

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Level 14

And if the estate has income,  the estate needs to file a 1041, too.


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Level 10
If there even is an estate.
** I'm still a champion... of the world! Even without The Lounge.
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