When a Family Revocable Trust passes to the Successor Trustee upon death of the Grantor(s), how are the Savings and Checking Accounts accounted for using Form 1041.

[bn-ual]

Checking and Savings account were set up under the " _____ Family Revocable Trust"

Parents set up trust in 1996. Second parent died in October 2015. EIN number was issued in December 2015. House was sold in DEC 2015 at a $10,000 loss. No money has been dispersed to beneficiaries yet because all bills etc. were not paid until January 2016.

Cannot find in the 1041 where to account for the Bank Account Checking and Savings.

Thanks

[tagteam · Accepted solution]

"Cannot find in the 1041 where to account for the Bank Account Checking and Savings."

You do not have "to account" for the checking and savings deposit accounts because they are considered trust corpus (i.e., trust assets or principal). You simply need to account for the income generated by those accounts and any gain/loss involved in transactions engaged in by, or on behalf of, the trust. 

However, the proper course of action would be (or have been) to notify the bank that the last grantor/trustee has passed, the title of the "new" name of the trust (e.g., Smith Family Irrevocable Trust - which name would be found in the trust instrument), and the EIN that was issued in December. Doing so will ensure proper accounting and reporting of income.