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Trust funded by estate

Ruth1
Level 4

Deceased taxpayer funds a Health Trust for 21 beneficiaries. Complex Trust. Some beneficiaries have taken distributions for various health reasons. Initially, I set up the beneficiaries receiving the distributions as k-1 income to them but now realizing there is no trust income as the trust was just opened with $$ funded by the estate.

How in Lacerte to you show initial funding and do theses beneficiaries even get k-1's?  

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George4Tacks
Level 15

There is no place to indicate funding.

No income means no requirement to file. 

Since you have probably already paid for a 1041, you should probably go ahead and complete the return and charge the client. (Filing is a form of audit insurance, since the statute of limitations begins to run.) Beneficiaries that receive distribution will likely appreciate a k-1 that shows nothing needs to be claimed. 


Here's wishing you many Happy Returns

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2 Comments 2
George4Tacks
Level 15

There is no place to indicate funding.

No income means no requirement to file. 

Since you have probably already paid for a 1041, you should probably go ahead and complete the return and charge the client. (Filing is a form of audit insurance, since the statute of limitations begins to run.) Beneficiaries that receive distribution will likely appreciate a k-1 that shows nothing needs to be claimed. 


Here's wishing you many Happy Returns
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Ruth1
Level 4
Thank you for your quick response.
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