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Re: Tax preparation with Revocable Trust

> When one establishes a Revocable Trust to shield assets from

>> probate, what ramifications, if any, are there for tax >> preparation? Does a tax return of any kind have to be filed >> for the trust? Would I still file a 1040? > The filing requirement for the 1041 are independent of the > filing requirements for the 1040. > Each stands on its own. > Generally, the filing requirement depends on income. > Remember to also check the state filing requirements for the > individual and trust tax returns. > Each state has its own rules.

This answer is incorrect for revocable trusts (Living Trust). Such a trust is an ignored entity for income tax.

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Reply to
Herb Smith
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I wouldn't call it incorrect. He says the filing requirement depends on income. In the case of a grantor trust, the trustor is taxable on all trust income, so the trust itself as no taxable income. As a result, there is no need to file a return for the revocable trust. Stu

Reply to
Stuart A. Bronstein

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