In this situation I have seen other people in these discussion groups decide to enter only 1 K-1, not marked as final, with the sum of each of the k-1s. There is a belief that the totals are what the IRS will be looking for and that feels right. If the IRS is even verifying K-1 amounts. Who knows?
If you do otherwise, you may lose important history for the "final k-1" that is carried forward each year and may only be used when the partnership interest is sold or the partnership otherwise ends. Typically these are passive activity loss (PAL) carry forwards. Or worse you may claim the suspended PAL in the current year, even though you didn't fully dispose of your interest and offset other income.
The advice about these not being a sale feels correct to me. The only thing that gives me pause is going from a joint to a trust account. If 2 people own it in the joint account and then 1 person's trust owns it after the transfer, I wonder. If the trust is a joint trust (man how I hate those, often times very confusing what happens to which assets after the first to die) with the same settlors as joint account owners, that seems more clear.
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