Legal Question in Wills and Trusts in California

When a living trust becomes irrevocable due to the trustor's death, under what circumstances must the successor trustee prepare and file tax returns for the trust and send K-1s to the beneficiaries? I think it has something to do with either (a) the trust earning income, or (b) whether the income is retained in the trust or fully distributed to the beneficiaries, but I'm not at all clear on this. What are the trustee's record-keeping, tax filing and beneficiary-report-making duties in general?

Asked on 2/01/10, 9:24 am

2 Answers from Attorneys

Elizabeth Karnazes New York Offices of Elizabeth Karnazes

You need a lawyer or tax advisor, as there are many factors and this is not something that can be simply answered.

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Answered on 2/07/10, 2:54 pm

Jonathan Reich De Castro, West, Chodorow, Glickfeld & Nass, Inc.

In almost all cases you will need a trust tax return. I suggest that you consult with an accountant as a first step.

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Answered on 2/08/10, 8:48 am

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