Final Trust Return 1041

4 replies
141 views

I am filing a final 1041 for mom who passed in 2025. She received K-1 stmts from her trust for her personal return. In TT do I delete her name as beneficiary and add my siblings since we received money from her estate?

TurboTax Business Windows

PatriciaVAnswer

Alumni - Intuit

Expert Reviewed

Unless the trust was changed to admit her children as beneficiaries, you would not change the beneficiary information on the final trust return. Note that the final distribution from the trust is paid to the existing beneficiary, your mother. The funds then flow into her estate and eventually to her heirs.

Be sure to mark this as the final return in TurboTax Business under General Info >> About Your Trust or Estate. Edit the first line "Is filing its final return" to say "yes."

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

PatriciaVAnswer

Alumni - Intuit

Expert Reviewed

Be sure to mark this as the final return in TurboTax Business under General Info >> About Your Trust or Estate. Edit the first line "Is filing its final return" to say "yes."

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

kwelch0424Author

Level 2

Hi Patricia,

Thank you so much for your reply! Can you tell me if the assets after the date of death have to be separated from her assets while she was still living? A 706 was not required in this case so I’m trying to figure out if accounting needs to be separated out. Can I do her trust return and issue her a K-1 statement and then on her personal return the remaining assets are gifted to her beneficiaries?

Thank you again!

PatriciaV

Alumni - Intuit

In general, money or assets received after the date of death belong to the heirs, to be distributed according to the decedent's will. If, however, the income or assets were generated by investments or property owned by the Trust, they would belong to the trust and be distributed to the beneficiaries according to the trust documents.

The fate of any money or assets owned outside the trust would be governed by the decedent's will.

And, yes, you would complete the final trust return and include Form 1041 Schedule K-1 in the final Form 1040 tax return for the decedent.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

M-MTax

Level 15

@kwelch0424 wrote:
I am filing a final 1041 for mom who passed in 2025. She received K-1 stmts from her trust for her personal return. In TT do I delete her name as beneficiary and add my siblings since we received money from her estate?

@kwelch0424 What does this mean? You wrote:

"She received K-1 stmts from her trust..."

Statements? Plural, as in more than one? If so, from whom did she receive them? If she was the beneficiary of a grantor trust, then she should not have been receiving any K-1s since grantor trusts are treated as disregarded entities for federal income tax purposes.

If the trust was a non-grantor trust, then the trust might be receiving K-1s from other entities, such as from investments in limited partnerships, other trusts, or S corporations. Those would then be reported on the trust return (1041) and the trust would issue ONE K-1 to your mom to report on her individual income tax return (1040). Which is it?

Regardless, were there any other beneficiaries listed in your mom's trust? If the assets and income are substantial you should seek guidance from a local professional.