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Deceased taxpayer funds a Health Trust for 21 beneficiaries. Complex Trust. Some beneficiaries have taken distributions for various health reasons. Initially, I set up the beneficiaries receiving the distributions as k-1 income to them but now realizing there is no trust income as the trust was just opened with $$ funded by the estate.
How in Lacerte to you show initial funding and do theses beneficiaries even get k-1's?
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There is no place to indicate funding.
No income means no requirement to file.
Since you have probably already paid for a 1041, you should probably go ahead and complete the return and charge the client. (Filing is a form of audit insurance, since the statute of limitations begins to run.) Beneficiaries that receive distribution will likely appreciate a k-1 that shows nothing needs to be claimed.
Answers are easy. Questions are hard!
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