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New Member
posted Feb 10, 2023 9:04:24 PM

Final Living Trust return creating sub-trusts

We have a main living trust made irrevocable by the death of the grantor in 2012.  In 2022, the trust was distributed equally to 3 sub-trusts to hold the assets for later distribution to beneficiaries upon their reaching a certain age.  The assets are appreciated stock held in 3 brokerage accounts under the sub-trusts EINs.  There was also a small distribution made to one of the beneficiaries from the main trust.  

 

How do I report the distributions in TurboTax business such that it closes the main trust and allocated the ownership to the sub-trusts?  There are no carryforwards from 2021.

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1 Best answer
Level 15
Feb 11, 2023 6:50:16 AM

If the main trust has terminated, file a final return for the main trust.

 

If there is income, gain, deductions, credits, et al., that was distributed, then issue K-1s.

1 Replies
Level 15
Feb 11, 2023 6:50:16 AM

If the main trust has terminated, file a final return for the main trust.

 

If there is income, gain, deductions, credits, et al., that was distributed, then issue K-1s.