Question

How to report a consolidated trust statment with a new TIN (after death) with pre-death tranactions included?

Forum|Forum|6 years ago
February 7, 2020
1 reply
0 views

My mother-in-law died June 14, 2019. Her revocable trust received a new TIN shortly thereafter. The account number at TD Ameritrade did not change. The consolidated statement received for the year had dividends, interests and brokerage sales report all on one form under the new TIN (not her SSN), although some transactions were before her death. Using the import feature, I get both pre and post death transactions How do I report this?

A

Anonymous_

Employee

@GHMueller wrote:

Using the import feature, I get both pre and post death transactions How do I report this?

In brief, you have to report all of the income and gains on her final income tax return and then indicate that she was a nominee recipient for the portion of the income and gains received after her death.

Since the trust became irrevocable as of the date of her death, it is treated as a separate entity and is therefore required to file its own income tax return (Form 1041) if the threshold is exceeded.

See https://www.irs.gov/instructions/i1041#idm140630132225648

Be advised, however, that TurboTax does not really support capital gains received as a nominee (i.e., you need to use Forms Mode and do overrides); you should probably seek professional guidance with respect to this matter, regardless.