Mom had a reverse mortgage for 10 years. House was always in the name of the trust but interest always reported under her SS#. She passed away and we paid off the mortgage balance of approx $350k and reverse mortgage company reported all the interest paid ($102k) and mortgage insurance premiums ($28k) to my mothers SS# in the year she died. She did not get monthly payments from the reverse mortgage. The funds were used to payoff her existing mortgage balance 10 years ago.
My questions are:
1. Since the trust paid of the reverse mortgage after her death would the trust take these deductions on it's return?
2. Would we file a nominee from the interest reported to her personal SS# to the trust's EIN? How ?
3. Would we need to report this interest on her personal / final return and then show it as an expensive going out to the trust or just ignore it on her return?
Any other help or advice is welcome!
Thanks
