Problems with Trust Tax Return

by Jonathan Todd
(Soutborough,Ma. USA)

I was asked to help a Trustee pull together their records and provide schedules for the purpose of filing their annual trust tax return. I have prepared individual tax returns for the past 25 years, but have never prepared one for a trust. The problems that have emerged are as follows:

1. There has been no tax return filings 11 out of the 12 years.

2. In conducting the writing up, I identified a series of transactions that I believe violiates the coverance of an Irrevocable Trust, where the Grantor received funds to supplement her cost of living as well as the Trustee; who is the daughter. Is there any way that these transaction can be classified, as a taxable event to each and allow the trust to stay valid, or can the Trust be dissolved?


Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Living Trust Discussion.

Like This Site

Subscribe to
Free Living Trust Information

Your E-mail Address

Your Name


We keep this private.

Follow the Living Trust Blog

Like this Page

Visit Our Social Pages

Become a Fan of Free Living Trust Information on Facebook Follow FreeLivingTrustInformation on Twitter Follow FreeLivingTrustInformation on Google+ Subscribe EstatePlanningHub Video on YouTube

Get a PDF version of this website and its sister site here.