My dad passed away and I am the Trustee. After getting an EIN, the revocable living trust was converted to an irrevocable trust and per his Will, the assets (all equities) were sold and distributed to his beneficiaries. There are significant long term capital gains in the Trust from the date he died (step-up) until I sold the assets (all equities).
My dad wanted the Trust to pay any and all capital gains taxes so his beneficiaries wouldn't have any tax liability. Will the Trust capital gains be provided on a 1099? All the Trust assets were in 1 brokerage account so I expect only one 1099. Is it simple to prepare the Trust Tax Return? Also, I plan to pay the entire tax liability with my personal check. Is that allowed? I will close the Trust Account before the end of the year.
