Client set up a revocable trust for wife as beneficiary. He died 3 years ago. Revocable trust used wife's SSN and had no income. Now (in 2022) their house will be sold for $600K. Lawyer does not know (!) whose SSN or EIN will be on 1099-S document. Should I get an EIN number for the (now irrevocable) trust just to be on safe side in case I have to file a 1041?
My understanding was that the deed on the house was totally in his name before he deeded it to the trust. But, yes, if jointly owned, then only half is stepped up. I was thinking that widow's medical expenses are so high (she is 90 and has dementia) that nursing home and nursing care would wipe out any capital gain.
Yes full step up if it was his house that was transferred to the trust.
Yes she could absorb a capital gain if she has huge medical bills.
Is this the only thing in the trust, such that the sale of the property and distribution of the proceeds will terminate the trust?
Hint - pay the accountant fees before distributing.
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