Trust Tax Returns – Get a good accountant to handle it!

Most people who are listed as Trustee on an estate plan have no idea what this will mean when they are called upon to deal with wrapping up the affairs of a deceased loved one. The creation of a trust will create an administrative responsibility that may go on for years and years after the loved one is gone. The trust holds the assets that are placed in it and disperses those assets according to the terms set down in the trust. These assets will at times produce income that is then taxable and will have to be claimed on an annual tax return form, 1041. If you find yourself in this situation, consult a professional who is well versed in trust tax returns and be prepared to pay the person well to make sure the details are all dealt with correctly. Once you, as Trustee, disburse the assets to the beneficiaries, it can be difficult to go back and ask these individuals to return the funds to pay the taxes.  The Trustee has the authority to deal with the issues related to the income, assets, liabilities and distributions.  However, the Trustee also has the responsibility and legal obligations as well.

Need help?  Todd Courser 810-245-0813