Thank you for your reply.
I asked my legal counsel about it and he told me that the trust was a nominee (realty/real estate) trust (as it was in Massachusetts). The nominee trust is now a irrevocable grantor trust. Also, after my mother passed away, my attorney said that I needed an EIN for the trust. So I immediately did that. There was no rental income in the 2 months following my mother's death up to the end of the year (my decision). I completed and mailed an initial 1041 for the trust from my mother's Date of Death to the end of the year (2022).
I will assume that you are not an attorney, but that you have much knowledge in trusts. So.... Just to verify everything, the declaration of trust states: "This Trust shall be known as the XXXXX Real Estate Trust and is intended to be a nominee trust, so-called, for federal and state income tax purposes and to hole the record legal title to the Trust Estate and such functions as are necessarily incidental thereto." Further on, under "Beneficiaries", it states: "The parties hereunder recognize that if a sole Trustee and a sole Beneficiary are one and the same person, legal and equitable title hereunder shall merge as a matter of law." What does that mean?
Also under "Power of Trustees", it states: "The Trustees shall hold the principal of this Trust and receive the income therefrom for the benefit of the Beneficiaries, and shall pay over the principal and income pursuant to the direction of all the Beneficiaries..." Does that infer that the Trust must use 1041?
Also, under "Resignation and Successor Trustee" it states that if my mother passes, I am the successor trustee and the documentation of that was recorded in the Registry of Deeds, and it also states: "Upon the recording of such instrument, the legal title to the Trust Estate shall, without the necessity of any conveyance, be vested in said succeeding or additional Trustee or Trustees, with all the rights, powers, authority and privileges as if named as an original Trustee hereunder." Does this infer that the trust does not need a 1041?
Sorry this is so long. I hope you can shed more light on this for me.
