Trust Question - Deceased beneficiary

Forum|Forum|3 years ago
March 26, 2023
2 replies
22 views

Facts: Irrevocable Trust (FL) Income Beneficiary (100%) dies in February 2022. Remainder beneficiary post death (100%)

Question: How should the 1099 income be reported for the deceased beneficiary? The income beneficiary received a distribution for the income prior to death. Would the Trust file 2 K-1s one for the post death income for the remainder beneficiary and a final K-1 for the deceased income beneficiary up to the date of death?

Anonymous_

Level 15

You need to follow the terms of the trust, but how is this trust revocable (or is that a typo).

Typically, revocable trusts do no file a 1041 and, if they do, a grantor information statement is issued, not a K-1.

When an income beneficiary passes, many trusts provide that all income and assets then devolve to the remainder beneficiary.

Mike9241

Level 15

if a revocable trust income earned and received before the beneficiary died is reported on their personal final return - no k-1 from the trust. after that, the trust is responsible for reporting income and expenses of trust assets until such time as those assets are distributed to the remaindermen (the heirs) . if income is distributed then the trust issue a k-1 to the heirs.

Mike9241