How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3443
Experience:  3+ decades of varied tax industry exp. Tax Biz owner
Type Your Tax Question Here...
Tax.appeal.168 is online now
A new question is answered every 9 seconds

Is money that was in a decedents checking account and then

This answer was rated:

Is money that was in a decedent's checking account and then transferred to the subsequent trust account considered taxable income for the trust?
Welcome. Thank you for choosing us to assist you. My name is XXXXX XXXXX my goal is to help make your life, a little... less taxing.

In brief, based on the following information, the answer is no. SEE BELOW:

Income retained by the trust--Generally, trusts are “pass-through entities.” This means that trust income retained by the trust is taxed to the trust (but not if it is a charitable remainder trust), while distributed income is taxed to the beneficiary who receives it. In general, trusts are taxed like individuals for income tax purposes. General tax principles that apply to individuals also apply to trusts. A trust may earn tax-exempt income and may deduct expenses. Trusts are also allowed a small exemption. Income taxed to a trust is reported on Federal Form 1041 (U.S. Income Tax Return for Estates and Trusts). Federal Form 1041 is called a fiduciary income tax return because the trustee (i.e., the fiduciary) is responsible for filing it and for paying any taxes owed.


Please let me know if I can be of further assistance to you regarding this matter.

As we know that you have choices, we thank you for choosing this Q&A service for assistance.
Tax.appeal.168 and 4 other Tax Specialists are ready to help you

Related Tax Questions