Inheritance question(s)

Forum|Forum|2 years ago
February 4, 2024
1 reply
8 views

Husband & his Brother are the co-Trustees of their parents' LIVING TRUST who passed in 2023. All distributions have been made to relatives. (House was SOLD, CD's and Bank accounts closed, etc). Total estate was around $1.6 Million. They plan to file a form 1041 for the Distributions.

- Do we have to file anything specific for the INCOME with the FED on our taxes? Can't seem to find any specific form in TTAX.

- Do they have to send any specific form to the siblings who had $$ distributed to them ?

Thanks in advance.

TurboTax Business Windows

Anonymous_

Level 15

You really do need to contact the trustees for further information.

You might receive a K-1 with your share of the income, gain, deductions, credits, et al., or you might receive a distribution that is tax-free if the trustees paid any and all taxes due from the trust itself.

If you receive a K-1 (1041), you would simply enter the information from that tax reporting form into your own individual income tax return (1040).

Cody210Author

Level 3

OK, I guess I wasn't clear :

- He *IS* the Trustee of the estate. (he and his brother both are) We printed out a 1041 form the IRS site last night (TTax Home Business doesn't seem to have this form? ) So he Must file a 1041 to the FED, right? They distributed funds to siblings from the proceeds of the house sell & closing of all accounts.

- Do we/he need to Send a form of some sort to the recipients/siblings of the funds they distributed? Which Form ? Again, TTAX doesn't seem to have anything in software that specifies this.

- Lastly, he & his brother (Trustees) ALSO received money from the estate. Do they both have to submit a form to the IRS for inheritance RECEIVED? Nothing in TTAX points us to this or any specific form.