Filing form 1041 for deceased

[S13]

I have question for filing form 1041 for deceased person. 1041 will be filed for 2024 after year 2024 there is no earnings to distribute only deceased main home that successor trustee lives (living trust) till die.

Question is should I file 1041 for year 2024 as a final return? .Trust was Revocable trust and after death become irrevocable Trust Thanks

Sam

[IRonMaN]

If there is nothing left to distribute, it sounds like a final return to me.

[sjrcpa]

Is it an estate (for a deceased person)?

Or a trust (Successor Trustee)?

Who/what legally owns the house?

What happens to the house when Successor Trustee dies?

[S13]

Trust owns the house. when successor trustee dies children (beneficiaries get the house

Thanks 

[IRonMaN]

I misread that.  If the trust owns the house until the last man standing, the trust is still alive.  Although that kind of sucks for the next round of beneficiaries if the house appreciates in value.

[S13]

Trust document says "Revocable trust become irrevocable trust after death. both children and successor trustee are beneficiaries of deceased estate" I think this is helpful

Thanks

Sam

[sjrcpa]

All revocable trusts become irrevocable after death of the Grantor.

[S13]

It is  deceased estate. can we still file final 1041 or continue because property will appreciate for a certain period of time and gain will be distributed to beneficiaries.

Thanks

Sam

[BobKamman]

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@sjrcpa wrote:

All revocable trusts become irrevocable after death of the Grantor.

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Only if written that way.  Perfectly acceptable to provide "after I die, this trust may be revoked by my trusted friend and CPA, SJR." 

But I'm wondering what income the trust had in 2024 after the death. (I'm assuming that was in 2024.)  But I get hung up because in my community-property state, most trusts like this have two grantors, both spouses.  This one could have just one grantor.  So the accounts were closed, there are dividends and interest and gains and losses to report, but now just the house remains?  I would mark it as final, because we don't know the house will be sold by the trust, it could be distributed in kind after the death of the lifetime beneficiary.  

[S13]

Thank you very much

Sam

[sjrcpa]

"Only if written that way.  Perfectly acceptable to provide "after I die, this trust may be revoked by my trusted friend and CPA, SJR.""

True. I was oversimplifying.

And I still can't tell if this is a 1041 for an estate, trust or combined with a 645 election.