Sub Trust

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Long time client, father passed in 2019, and had a trust that created a irrevocable Sub Trust. Only asset is a brokage account. All 1099's issued under clients SS. He had gotten a EIN for the sub trust. did not tell me about the trust. Now he tells me his attorney told him about filing for the sub trust, and wants me to help him. Question do I file returns for the sub trust for 2019.20,21,22. I then would have to file amended returns for client adding K1. He has claimed all 1099's on his 1040, so he was not trying to hide income.

Any suggestion's would be welcomed.

Thanks

ProSeries Professional

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BobKamman

Level 15

What was the name and SSN on the 1099 that your client was bringing you for 2019 through 2021? Or was it the father who was the long-time client, and the son just walked in? Were all of the father's assets in the trust, or was there an estate to probate? Did it file 1041's ?

T

Terry53029

Author

Intuit Community Champion

My client is son, and all 1099's had his ss number. Seems as brokage dropped the ball, as the fathers assets were put in sons account at his death, and should have been changed to the Sub Trust. or that is what son has told me. When father passed a 1041 was done. (not by me) At this point I wonder if I should just do a 1041 for 2023, and see if IRS ever ask about other years, or do all years. Thanks for your input

T

TaxGuyBill

If the assets went into the son's account rather than the Trust's accounts, all is good from a tax perspective. The son properly reported the income on his assets and the Trust doesn't have any income or assets to report.

From a legal/inheritance/trust point of view, there could be problems resulting from the assets in the wrong account. But I don't see how that would affect current or prior tax returns.

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