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  • 1.  Irrevocable Trust

    Posted 04-12-2022 06:15 PM

    A new client, trustee,  came to me to file 1041 for an Irrevocable Trust.  It previously was a grantor trust and didn't file any returns.
    The grantor passed away and the trustee closed out various annuities at the end of 2021 with taxable income per 1099Rs of $400k.   If the income stays in the trust, taxes will be in excess of  $150k.  If I can distribute out the income to beneficiaries, each would be taxed much lower since there are 4.   if the funds weren't distributed to beneficiaries within the 65 days, are there any options to distribute the income on K1s to beneficiaries?  It was originally thought it could be a fiscal year and included on estate 1041, but that only pertains to revocable trusts.  I would like to save them the taxes, looking to file extension, obviously, to sort it out since they came to me so late.  

    Lori Di Marco
    Patchogue NY

  • 2.  RE: Irrevocable Trust

    Silver Most Valuable Member
    Posted 04-13-2022 08:46 PM

    Lori  is a Section 645 Election available?  Was it a revocable trust before death?


    Very truly yours,





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