Tagteam:
Thanks for your quick response. The trust law firm suggested the "inheritance" classification for a filing with the state where the real property is located. The original trust calls for establishment of a second trust to include the real property and funds for property maintenance. So here is a simpler question: how do I capture the transfer of real property from the original trust to the other on form 1041 so that the basis is properly reflected in both trusts? Thanks again.
