My father passed away in Sept of 2013. He created a trust that contained a hobby farm, 3 cars, and $15000 cash. Everything in the trust was debt free. The trust gave my brother the farm and one car. My sister and I each received a car. In addition all three of us received $5000. My father did not need to file tax returns for many years and that would have been the case in the year he died. Does a final tax return have to be filed for my father and does the trust have to file a form 1041 if everything was distributed in 2013 and there was no trust income?
Reporting requirements for trust after death of father
Feb 22, 2014
3 Replies
Nobody has any filing requirement, assuming the farm isn't worth several million dollars.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
Nobody has any filing requirement, assuming the farm isn't worth several million dollars. ============ Agreed: No 1041. However, as noted, there's not enough info to determine whether a form 706 is due.
Sorry for your loss. The exemption is currently $5.25 million, so if the estate is less than this, no form 706 is due. But it may still be a good idea to file file a form 706 in order to take advantage of the portability of the exemption, meaning that whatever part of the $5.25 million is not used gets transferred to the surviving spouse, which they can use on their form 706 (possibly almost doubling their exemption). But if the other spouse's assets are not large or there is no other spouse, then certainly no form 706 is due.
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