Business & farm

"Now she made a living trust and the condo was put back in her name with the trust"

 

This sounds like a typical grantor trust, which is treated as a disregarded entity for federal income tax purposes. As a result, you can choose an optional method of filing which, essentially, obviates the need to file a separate income tax return for the trust (Form 1041); you would simply file her Form 1040 as before.

 

See https://www.irs.gov/instructions/i1041#idm140630131852672

 

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