topic New to estate taxes, basic questions for doing taxes in Get your taxes done using TurboTax

New to estate taxes, basic questions for doing taxes

csbarbero — Thu, 05 Feb 2026 18:12:45 GMT

First off, thank you for any help.

My Mom passed in late 2024 and as Executor I set up 4 trusts (each with its own EIN) for her 4 grandkids (my 2 included). Trusts were set up and funded mid 2025. I put the money ($25K each) in a bank account, but to get better interest I moved $24K in a CD. The interest for all 4 accounts (for those CDs) was exactly the same ~$476. Consequently, I received 4 1099-INTs all with the same ~$476. It seems like I would have normally to file a 1041 except the amount for 2025 is below the $600 threshold. Is this correct? However, I anticipate more than $600 in interest in 2026, so it appears I will have to file a 1041 in 2027 for 2026; is this correct? Finally, I have been using TurboTax Deluxe for about 30 years, but it seems to do taxes I need TurboTax business; s that correct and if so do I buy them separately?

Again, thanks for any help.

Re: New to estate taxes, basic questions for doing taxes

M-MTax — Thu, 05 Feb 2026 18:30:32 GMT

@csbarbero wrote:
It seems like I would have normally to file a 1041 except the amount for 2025 is below the $600 threshold. Is this correct?

No. The $600 (or more) in gross income is applicable to estates. With respect to trusts, the threshold for filing a 1041 is $600 (or more) in gross income OR any taxable income for the tax year (regardless of gross income).

You'll find that taxable income number on Line 23 of your 1041(s) if you start preparing the return(s). If each trust has $476 in interest income and no deductions, there would be a filing requirement.

Re: New to estate taxes, basic questions for doing taxes

user17683423020 — Thu, 05 Feb 2026 23:18:52 GMT

I think you only need to open one Trust for 4 beneficiaries. It is so much simpler: you only have to file 1 Trust tax return/ year, and issue 4 K-1 for 4 beneficiaries if the Trust have earn income and distribute to beneficiaries. If you have 4 Trusts with 4 EIN it means you will have to file 4 trust Tax returns, it is costly. My advice is you can file the final Trust return to close them, and open just 1 Trust for 4 beneficiaries.

Re: New to estate taxes, basic questions for doing taxes

M-MTax — Thu, 05 Feb 2026 23:51:00 GMT

@user17683423020 wrote:
My advice is you can file the final Trust return to close them, and open just 1 Trust for 4 beneficiaries.

Sorry, but that's poor advice. The beneficiaries (grandkids) may not now be similarly situated or may become dissimilarly situated in the future, Further, one trust for all four grandkids may not be what @csbarbero's mom envisioned (or were her wishes).

Although four trusts would be more of an administrative burden, that setup also provides more flexibility.

Re: New to estate taxes, basic questions for doing taxes

csbarbero — Tue, 17 Feb 2026 23:46:03 GMT

Thank you for your answer.