Trust income tax returns

Do you have to file a trust tax return for the trust you manage? It depends. In this episode of Elder Law Issues, we review the trust income tax filing rules.

Spoiler alert: not every trust requires a separate tax return. Even trusts with an EIN (Employer Identification Number) may not actually have to file a federal income tax return.

Join us for our discussion of which trusts need to file a federal return, and what it means to be classified as a “grantor” trust. We explain what rules apply to trust tax filing, and who has to prepare them.

Caution: the entire area of trust income tax filings is complex (yes, we did notice our pun) and particular to your situation. Please discuss your situation with your own attorney and/or certified public accountant. Your mileage, as they say, may vary. And state laws may be different, so make sure you get your advice from a local (and qualified) expert.

A related question that we touch on: when does your trust actually require an EIN? Another spoiler alert: it’s not when the trust is irrevocable, or someone other than the grantor is trustee — though those are both important questions to consider.

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