@tagteam "For tax purposes an irrevocable trust can be treated as a simple, complex, or grantor trust, depending on the powers listed in the trust instrument. "
She lives off the trusts income but, a company and my mother are the trustees and has disgression to release funds, the trust was court ordered and she has no power to revoke it. I understand she has always paid taxes on the income in full, and there has never been a 1041 filed as it was not necesarry... she though gets a grantor tax information letter. All trusts have grantors. I am thinking this is a non-grantor trust as she has no control although for tax purposes there is no requirement to file the 1041 as she has all benefits but, under the new tax laws the only way to get the 67(e) deduction is to file a 1041. Upon her passing, it becomes non-grantor no matter what and as there are multiple beneficiaries, then a 1041 is required by tax law to be done. Do you think I'm correct and I should start filing the 1041?
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