1041 Trust converts from complex to simple trust during year

Forum|Forum|4 years ago
March 20, 2022
1 reply
8 views

In January, Mom was the only beneficiary, and the Trust was complex [trustees not required to pay all income]. Then Mom dies.

From February to December, four Daughters are the beneficiaries, and the Trust requires all income to be paid.

Do I need 2 returns for the year?

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BobKamman

Level 15

Were separate trusts created for each daughter? Have you checked the trust document to make sure? Otherwise, it's not uncommon for trusts to switch back and forth from complex to simple. It doesn't mean a new entity has been created with new filing requirements.

D

DENNYCARRAuthor

Level 4

Mom's trust does not create 4 new trusts for the daughters when Mom dies. Mom's trust continues after Mom's death and the daughters become beneficiaries of Mom's trust after Mom's death. I understand that a trust can be simple 1 year and complex the next year. But, in this case, the trust was both simple and complex within 1 year. How do I report that? Or is the trust considered complex for the full year because it was complex on 12/31....?

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