Legal Question in Wills and Trusts in Georgia
Must Trusts File Federal Tax Return
If I create a trust, will the Trust have a separate identity and have to file it's own Federal Income Tax return each year? Same answer for revocable and irrevocable trusts created?
2 Answers from Attorneys
Re: Must Trusts File Federal Tax Return
As a general rule, if a grantor is the trustee of his/her own revocable trust, a separate tax ID number is not required, and taxable items will generally be reported on the grantor's individual tax return. With respect to an irrevocable trust, however, a separate tax ID number and a fiduciary income tax return are generally required. This is not true in all cases though. Depending on the nature of the irrevocable trust and the assets used to fund it, a separate tax ID number and/or fiduciary return may not be necessary.
Re: Must Trusts File Federal Tax Return
Our understanding is that each trust must file its own tax return.
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