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New Member
posted Jun 5, 2019 5:10:56 PM

Do I need to prepare tax returns for both trusts or do I just establish the Bypass Trust and show the Survivors income as her personal income?

if a residence was sold and the proceeds will now split into (2) trusts, a Survivors Trust and a Bypass Trust. Do I need to prepare tax returns for both trusts or do I just establish the Bypass Trust and show the Survivors income as her personal income?

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New Member
Jun 5, 2019 5:10:58 PM

The Survivor's trust and the Bypass are separate trusts, and each require a separate tax return.  Depending on the terms of the Survivor's trust, it may be a grantor trust with the surviving spouse treated as the owner of the trust assets.  I suggest consulting your estate planning attorney for an opinion on this matter.

1 Replies
New Member
Jun 5, 2019 5:10:58 PM

The Survivor's trust and the Bypass are separate trusts, and each require a separate tax return.  Depending on the terms of the Survivor's trust, it may be a grantor trust with the surviving spouse treated as the owner of the trust assets.  I suggest consulting your estate planning attorney for an opinion on this matter.