DavidD66
Expert Alumni

Get your taxes done using TurboTax

The estate has to file a tax return if it had income of $600 or more.  If less than that, no return needs to be filed.  The trusts have to file a (separate) tax return if they have any taxable income.  If no taxable income, and total income less than $600 the trusts do not have to file a return.   

 

There is also the option to combine the two trusts if they have the same beneficiaries and are substantially the same.  However, based on your brief description it doesn't sound like that would be cost effective, as you would have to pay an attorney to draft a new trust document.  

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