NASSAUSUFFOLK

 View Only
  • 1.  irrevocable grantor trust when grantor dies

    Posted 07-22-2024 09:36 AM

    I have several questions about what happens to an irrevocable grantor trust when the grantor dies.  I'm hoping someone can help me with these, or point me in the right direction, or advise who I may need to consult with.

    1. Is a new tax ID needed for the trust as of the DOD?
    2. In the year of death (2024), what boxes are checked on the trust 1041 page 1 A: grantor type trust (from 1/1 to DOD) and complex trust (from DOD and forward)?  
    3. Income in the year of death: presumably the income from 1/1 to DOD will continue to be reported on an attachment and flow through to the grantor's final 1040.  What happens with the income from DOD forward?  If not paid out or required to be paid out in year of death, is the post-DOD 2024 income taxable to the trust or is it still reported on K-1's to ultimate beneficiaries?
    4. Although the trust specifies that it's assets should be distributed after the grantor's death, that probably won't happen until the following year (2025) as some assets outside the trust have to be probated.  That being the case, what box(es) are checked on the 1041 page 1 A: complex trust?
    5. Since presumably, everything will be distributed in 2025, is the 2025 income reported on K-1's to the beneficiaries and not taxed at the trust level?
    6. The probated assets: do they have to first go through an estate with it's own tax ID and 1041 and then moved into the trust (so the decedent's estate box would never be checked on the trust return)?

    Feedback is appreciated.



    ------------------------------
    Mary Sherman
    CPA
    MARY SHERMAN, CPA
    Hicksville NY
    516-433-3734
    ------------------------------


  • 2.  RE: irrevocable grantor trust when grantor dies

    Platinum Most Valuable Member
    Posted 07-22-2024 08:49 PM

     

    Mary

     

    Is this an IRREVOCABLE   or a revocable..

    I know you said IRREVOCABLE   but I wanted to clarify.

    Of course the trust document will answer your questions.... But allow me to confirm the abovl

     

    Abby Alhante,  CPA

     

    Kurcias  & Alhante, LLC  CPAs

    525 Broadhollow Road   Suite 104

    Melville NY  11747

    516.829-5890  Ext  2   Fax 516-829-3976

    Mobile 516-381-9301

    AbbyA@KurciasAlhanteCPAs.com

    ( E mail response preferred )

     

     






  • 3.  RE: irrevocable grantor trust when grantor dies

    Posted 07-23-2024 08:59 AM

    Hi Abby,

    It is irrevocable.



    ------------------------------
    Mary Sherman
    CPA
    MARY SHERMAN, CPA
    Hicksville NY
    516-433-3734
    ------------------------------



Discussion Disclaimer

The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.