My mother had her rental properties in a grantor trust, and I filed each year those results with her personal taxes (under the 1040). The trust was initially a revocable living trust, but was amended to an irrevocable trust in Feb 2021. As trustee I continued to file everything with her personal taxes under Form 1040. She passed away in March 2023. At that point I began to send net proceeds to her live-in boyfriend and also to my two sons. The trust is complex since it does not require all income to be distributed. This has to continue until the BF passes away at some point in the future, at which time the trust terminates and everything is distributed to my sons. So, for 2023 do I file a Form 1040 for the period before her death, and then a Form 1041 for the trust for the period after her death? Doesn't seem right because this would under-report overall income.
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Sorry for your loss but don't get your thinking. How would it be under-reporting? Income from January 1 up to the date of her death is on her 1040 and the rest of the year gets reported on the 1041.
Sorry for your loss but don't get your thinking. How would it be under-reporting? Income from January 1 up to the date of her death is on her 1040 and the rest of the year gets reported on the 1041.
Yeah, I get your point. I will proceed with 1040 for before her death, then 1041 after. Thanks for your answer!
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