The Credit Shelter Trust has been filing 1041's for the trust. Now the trust beneficiary and Trustee has died and the controlling documentation allows the new Trustee to dissolve the trust by dividing assets among new beneficiaries. Is only a final 1041 required or is other paper work to IRS required?
@skibumscrib wrote:
Is only a final 1041 required or is other paper work to IRS required?
Generally, only a final 1041 will need to be filed.
Of course, if other forms were filed with the IRS, such as Form 56, then there may be other requirements (e.g., filing a termination notice in the case of Form 56).
@skibumscrib wrote:
Is only a final 1041 required or is other paper work to IRS required?
Generally, only a final 1041 will need to be filed.
Of course, if other forms were filed with the IRS, such as Form 56, then there may be other requirements (e.g., filing a termination notice in the case of Form 56).
No. You are correct to file the 'final' Form 1041 for this trust. Once filed with the checkbox for Final Return in Box F, there is nothing else to do as long as all the assets and income is transferred to the beneficiaries on their final K-1.
You should check with your state to see what the rules are for the final closing of a trust or estate.