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form 1041

MaryJ
Level 2

I have a client who died in March had a living trust so all of his assets flowed directly to his wife.  Wife died in September of 2024.    They had a Joint Living Trust . 

Do I need to file two 1040-estate returns, to show final distribution of funds to trustees?

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3 Comments 3
sjrcpa
Level 15

I hate joint trusts.

You need to read the trust document. What happens upon the first to die? When were distributions made? To whom?

"all of his assets flowed directly to his wife" Probably not if they were in the trust.

A trust return is not the same as an estate income tax return. Although sometimes a trust can elect to be part of the estate. These are 1041s, not 1040s.

A 2024 1040 is also needed to report income while they were alive.


The more I know the more I don’t know.
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BobKamman
Level 15

Died in March of what year?  If 2024, then income through date of wife's death goes on final 1040, income after that date goes on a 1041 return. Generally speaking.  Every trust is different, except for the ones that are all alike because they use the same boilerplate language from a paper mill.   

@sjrcpa If you don't like joint trusts, you're lucky you don't live in a community property state.  I don't like people who bring their separate trusts from common-law states.  Or, more often, all of the property is just in the husband's trust.  

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sjrcpa
Level 15

@BobKamman Yes they probably are fine in community property states.


The more I know the more I don’t know.
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