Legal Question in Wills and Trusts in California


One question I have regarding my mother's trust conversion. She had a Califonia revocable living trust and recently passed away. I am in charge of managing the trust. I have been asked to get an EIN number to convert her bank assets over to an account with a new EIN. When I completed the IRS form to get an EIN number, there is a section that asks me this:

Trust filing as an Estate under Sec. 645

(check if yes)

It also provided me this information about a Trust Filing as an Estate under Section 645:

Trust Filing as an Estate under Sec. 645

A trust filing as an estate under Section 645 election allows a Qualified Revocable Trust to be treated and taxed (for income tax purposes) as part of its related estate during the election period. Once the election is made, it cannot be revoked.

My question is, do I check this box as a "Yes" or do I not check this? What are the implications of this?

Asked on 1/29/16, 1:42 pm

1 Answer from Attorneys

William Christian Rodi Pollock

Probate estates are allowed to use non calendar years. This allows this option even though you have a trust rather than a probate (as far as we know). It may or may not be useful to you depending on a substantial number of factors, including where you expect administrative income to be taxed and the relative tax rates of all beneficiaries. . There are many other tax implications. I would suggest that you consult with probate and trust counsel or your CPA in making the decision.

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Answered on 1/29/16, 1:54 pm

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