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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29485
Experience:  Taxes, Immigration, Labor Relations
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My father died in Dec 2014. His living trust with an investment

Customer Question

My father died in Dec 2014. His living trust with an investment firm was divided between my sister and me in November 2015. My sister and I were co-trustees until that division took place. The investment firm sent a 1099-DIV with my father's social security number. How should I report this?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
If that account was established under trust name - you need to be aware that after the grantor passed away - the living trust became irrevocable - and you as trustee should obtain a separate tax ID for the trust and provide that tax ID to the investment firm.When that is done timely - all reporting forms woudl be issued to the trust and not in the decedent's name .Regardless - you woudl need to file a tax return for the trust (form 1041) and report that income - but as it was reported in your father's name and his social security number - you woudl need to attach a note with explanation.Let me know if you need any help with reporting.
Customer: replied 1 year ago.
Another advisor has said we should get the investment firm to reissue the 1099 as it reflects the division between my sister and me (that is 2 new 1099s, for each of our SSNs).
Customer: replied 1 year ago.
And if we do file with his SSN, I can't figure out what to do about things like address, filing status, etc.
Expert:  Lev replied 1 year ago.
That woudl be correct.But I doubt they will agree as most likely you did not timely provide information about the tax ID of the trust and did not change the title on the account.You also did NOT divide account into two accounts - so asking two forms would not be correct - that account belongs to the trust? - so the form should be issued to the trust.You may try to talk to them - but I doubt they woudl agree.You may NOT file using your father name and his SSN - that will NOT work.
Customer: replied 1 year ago.
we did divide the account into 2 accounts in Nov 2015.
It sounds like you are contradicting what you said in your first response.
The account was always in my father's name/SSN
Expert:  Lev replied 1 year ago.
Was that account under your father's name OR under trust name?
Customer: replied 1 year ago.
The name was the XXX Family Trust, but the Taxpayer ID # ***** always been his personal one.
Expert:  Lev replied 1 year ago.
I will be sending you a premium service for a nominal fee.Let's discuss over the phone and avoid confusions.
Expert:  Lev replied 1 year ago.
I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you will all tax related issues.

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