Responses to my Trust question using the deceased' SSN

[Greta]

I'm responding here because my Details box didn't work. Thank you for all the many excellent leads. I believe this may happen somewhat often: Wealthy person with revocable trust (using SSN) dies mid-2021. Morgan Stanley did not split the 2021 report between revocable and irrevocable trust income. I too put it all in personal return per 1099-div packages. In 2022 Morgan Stanley still produced 1099-div Trust reports in SSN. Trustee is a lovely 93-yr old widower who is struggling with early mental decline. He will get me in touch with daughter who will be designated as trustee. Morgan Stanley manages his enormous wealth -- was there no one in their staff to guide a new widower client through this? (Last year estate of the deceased paid 1/2 mil in unnecessary taxes because no beneficiary was listed in an annuity contract. I'm sorry I'm venting.) Finally my question: If I belatedly get an EIN and file the trust return, can I attach a statement that income was erroneously reported under such-and-such SSN.

[BobKamman]

What would be the purpose of attaching such a statement?  IRS is not going to send you a thank-you card for paying tax on the same income twice.  If you file an amended 1040, backing out the trust's income, then an attached explanation is needed.

So the decedent had a trust, but also an annuity with no beneficiary, so it went to her estate, and the estate paid tax on it?  The money is just sitting there, it was not distributed to heirs?  As I was just saying to a client yesterday, 90% of people with a living trust don't need one, and 90% of people who buy annuities, shouldn't. 

For tax preparers it's difficult to spot those annuities, since often they don't generate current income.  (Clients, however, may bring the annual statements, because they're as confused now about how they work as they were when they bought them.) 

[taxes96786]

This is why I insist my clients provide the December statement for each of their investments.  No guessing on what you need.

[Just-Lisa-Now- · Accepted solution]

It happens often enough that its not a big deal.  Forms come straggling in after death in the SSN of the deceased.  No explanation statement is needed.