Filing 1041. I am Trustee. Mom was grantor. My kids beneficiaries, payouts scheduled by ages. Is this a complex trust?

[tagteam · Accepted solution]

"Is this a complex trust?"

It most likely is a complex trust since corpus (principal of the trust) will be regularly distributed.

See https://www.irs.gov/instructions/i1041#idm140630131644656

[rpowell0215]

Filing 1041 for ILIT as Trustee. No 2017 1041 filed because income below threshold to file. For 2018, can I therefore avoid an underpayment penalty?

[rpowell0215]

Filing 1041 for ILIT as Trustee. No 2017 1041 filed because income below threshold to file. For 2018, can I therefore avoid an underpayment penalty?

[tagteam]

Yes. The trust falls within an exception to required estimated tax payments; those trusts that had a 12-month 2017 tax year and had no tax liability for that year.

See <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-prior/f1041es--2018.pdf">https://www.irs.gov/pub/irs-prior/f1041es--2018...>