I think I know the answer but curious for community input...
Last Trustee of a Trust passed away, leaving stocks and cash in brokerage account in name of the Trust, with beneficiaries. Technically, terms of Trust are that beneficiaries split the assets of the Trust. Of course, that doesn't physically happen immediately (as far as distribution), but I guess that leads to my question. Even if the stocks and cash are still in the Trust account for say months, do they not belong to the beneficiaries upon Date of Death, and all income and potential tax consequences belong to the beneficiaries?
So, if death happened first week of January, then any income earned in the account would be attributed to the beneficiaries and not the Trust?
And since in those few days, the Trust did not earn $600, then there is no need to file taxes for the Trust? Or do I need to file one return to 'close to book' on the Trust?
Lastly, will the brokerage report any income as Trust income prior to distribution to beneficiaries, and if so, can it be 'corrected/changed' to be assigned to the beneficiaries? (assuming prior assumption is correct).
Thanks!
