My parents had a living trust. Will the trust owe taxes after they die?

thesherrya · ‎October 25, 2023

Both my parents have passed on. They had a trust for us kids. Will the trust owe taxes for 2023?

Emack_EA · ‎October 25, 2023

Hello @thesherrya , thank you for being here. Sorry about your parents.

The trust can't pay taxes on distributed income but the trust is responsible for paying any taxes due prior to any distribution. The beneficiary must pay the tax on the income from issued by the trust. For more information please click on the link below regarding Schedule K-1 beneficiary's share of income, deductions, credit, etc.

https://www.irs.gov/forms-pubs/about-form-1041

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Emack_EA · ‎October 25, 2023

Hello @thesherrya , thank you for being here. Sorry about your parents.

The trust can't pay taxes on distributed income but the trust is responsible for paying any taxes due prior to any distribution. The beneficiary must pay the tax on the income from issued by the trust. For more information please click on the link below regarding Schedule K-1 beneficiary's share of income, deductions, credit, etc.

https://www.irs.gov/forms-pubs/about-form-1041

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Emack_EA · ‎October 25, 2023

*issued K-1

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Expert does your taxes

Do it yourself

Resources

Support

My parents had a living trust. Will the trust owe taxes after they die?