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 PDtax Your Own Question
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4025
Experience:  35 years tax experience, including four years at a Big 4 firm.
Type Your Tax Question Here...
PDtax is online now
A new question is answered every 9 seconds

Does a Grantor Trust always file as 1041 A Decedent's Estate

Customer Question

Does a Grantor Trust always file as 1041 A Decedent's Estate Trust return beginning the year that the Grantor passes away?
Submitted: 6 months ago.
Category: Tax
Expert:  PDtax replied 6 months ago.
Hi from Just Answer. I'mCustomer I'll assist. The answer is no. Grantor trusts can be reported as disregarded entities, and reported by the decedent up to his passing. The trust document, and how it specifies the trust passes to a beneficiary dictates the subsequent filing. If the trust is a specific bequest to an inheritor, there might never be the need for a 1041 filing, as the inheritor might take direct dominion and control over the trust and its assets and administer them personally on a Schedule C or E, perhaps in a similar manner as the grantor reported. There is also a rule of perpetuities, which might come into play. The trust assets might have to be liquidated, by the estate. A 1041 would be filed. The specifics of your case would dictate specifics, but the answer to your question is clearly no, not always. Thanks for asking at Just Answer. Please rate my assistance using the rating scale on your page. Three stars or better are appreciated. I'mCustomer