Business & farm

"do I have to file a 1041 for 2016?"

Technically you do not since the trust's income is below the filing threshold. 

See https://www.irs.gov/instructions/i1041/ch01.html#d0e378

It is, however, a good practice to file even if not required for the purposes of continuity and also to make the beneficiary(ies) aware that they do not have any tax liability for the tax year as a result of their status.

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