Trust Account from an Estate-Minor Child

Forum|Forum|1 year ago
January 30, 2025
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My mother passed away in 2024. She requested that a trust fund be set up for my minor grandchild. He can obtain the monies when he reaches 21. Myself and my sister and the Co-Trustees under the will of my mother. I received a 199-INT for $43.00 in interest. I am unsure if I should file a 1041 with a Schedule K-1.

I did research the community but was unable to find a definitive answer.

Thank you

Best answer by M-MTax

Understood but a testamentary trust simply means the trust "sprang" out of a will. The terms of that trust should dictate which type of account needs to be established for the minor, if an actual trust needs to be established, or some other explicit provision for the minor beneficiary.

M-MTax

An income tax return for a trust (1041) is required to be filed if there is any taxable income or gross income of $600 or more. The $43, however, is less than the $100 exemption the trust would receive. Regardless, you can file a 1041 and pass the $43 through to the beneficiary.

No matter what, you need to consult with a tax attorney, or other tax professional, with expertise in this area who can actually review the terms of the trust itself.

You have not provided sufficient information regarding the trust at this point. For example, does the trust mandate that an actual trust be set up for the minor or just something like a UTMA account?

I'm sorry for your loss.