Multiple fiduciaries

[spikewt1]

I just spent over 1 hour on the phone with a ProSeries support representative to find out how to enter the name of a co-trustee on the Form 1041 software. The answer is: you can't. I consider this to be a big problem.

I strongly recommend that the software be updated to allow for the names of both/all co-trustees to be entered. It is not right to present a fiduciary tax return to clients with only one of several trustees named in the document. It signals to the unnamed co-trustees that they are less important. It can potentially cause interpersonal problems between trustees. And, all co-trustees are legally responsible for tax reporting. I am old enough to have prepared fiduciary returns before the existence of software. It is perfectly proper to type in two or more names on page 1 of the Form 1041. In fact, when filing a New York fiduciary income tax return, a supplemental page is required to be filed reporting the names, addresses, and social security numbers/EINs of all the fiduciaries. 

When a testator or grantor of a trust names co-fiduciaries, it is because the testator or grantor wants more than one person to be responsible. It should not be up to Intuit or the IRS to decide that one co-fiduciary is more important than another.

[IRonMaN]

"I just spent over 1 hour on the phone with a ProSeries support representative"

That's an hour of your life you will never get back.  Personally, I would have entered one and just told the client that the software wouldn't let me enter everybody.................... and then moved on to the next return.

[BobKamman]

Now you can spend all day on the phone with IRS, complaining about how an EIN application allows the name of only one co-trustee. And why, in the case of trusts and estates making a Section 645 election, the 1041 instructions require the trustees to pick just one:

“If there is more than one electing trust, the trusts must appoint one trustee as the filing trustee. Form 1041 is filed under the name and TIN of the filing trustee's trust.”

[Skylane]

No question about PS software limitations… no question about the likelihood that they’ll revise it. My workaround is to enter ‘First Named Trustee, et. al’ and include supplement.

[Qablooie]

I have also run into this concern on multiple trust returns. As Skylane noted above, "‘First Named Trustee, et. al’ and include supplement" is the best recourse to address any concerns. Supplement info is available to add on almost all returns.

[BobKamman]

The software does what IRS approves.  IRS just wants one name and one signature.  Don't kill the messenger.