Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Mar 11, 2021 9:42:28 AM

Beneficiaries of a trust

My aunt set-up a Revocable Trust many years ago. She passed away in 2020.  The turst had a loss in 2020. We have been selling the assets of the trust and did not made any distributions to the beneficiaries. 

The beneficiaries of the trust are 4 individuals with 10% interest each. They are to recieve a one time distribution of principal and undistributed income within 2 years of the Trustor's death. The remaining 60% is to be held in the trust to pay college related expenses for any descendants of my Aunt's parents. (These could be a large number of people.) This will continue until the death of the Trustee (me). 

How do I list the 60% beneficiary(ies) on the 1041?

In future years will I still need to list the 4 individuals as beneficiaries?

0 1 193
1 Replies
Level 15
Mar 11, 2021 10:21:37 AM

You need professional tax guidance including, preferably, legal counsel.

 

Not only do you have skip beneficiaries (that may or will involve GST), apparently the trust also mentions beneficiaries who are not "lives in being" (i.e., not even born at this time).  This scenario is highly complex and you should consult with tax and legal professionals.