Deceased trustee/creator

Forum|Forum|1 year ago
August 30, 2024
1 reply
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A trustee/creator passes away in 2023. He used to claim the trust income & expenses under his 1040.

1- For 2023 tax return should the trust be filed under the Decedent trustee 1040 or file 1041 under Successor Trustee?

2- The successor trustee sold stocks from the trust & distributed the proceeds among beneficiaries, should the basis of these stocks be The initial cost of the asset when it was first acquired or step-up Fair Market Value at Death?

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Best answer by sjrcpa

1. Income up until date of death goes on 1040. Income after death goes on 1041.

2. Assuming it was a plain vanilla Grantor Trust, the assets in the trust get a basis step up (or down) to date of death FMV.

sjrcpaAnswer

Level 15

1. Income up until date of death goes on 1040. Income after death goes on 1041.

2. Assuming it was a plain vanilla Grantor Trust, the assets in the trust get a basis step up (or down) to date of death FMV.

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

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