If I can piggy back on this question, I have a similar but simpler situation. My mother's trust became irrevocable on her death. I'm trustee and sole beneficiary. All the assets (all financial) were distributed within two months of her death, but not before the trust earned $700 in dividends. There were no expenses. I'm filling out Form 1041 with trepidation. Here's what I think I need to do:
-Specify Complex trust, Initial and Final return
-Enter Dividends and Qualified dividends
-Claim $100 exemption
-Calculate tax from Qualified Dividends Worksheet of Schedule G (Result is $0)
-Sign and mail return.
Does that look adequate? I assume I don't complete Form K-1. Apologies if this question is out of line. Many thanks!
