Legal Question in Wills and Trusts in California
When a living trust becomes irrevocable due to the trustor's death, under what circumstances must the successor trustee prepare and file tax returns for the trust and send K-1s to the beneficiaries? I think it has something to do with either (a) the trust earning income, or (b) whether the income is retained in the trust or fully distributed to the beneficiaries, but I'm not at all clear on this. What are the trustee's record-keeping, tax filing and beneficiary-report-making duties in general?
2 Answers from Attorneys
You need a lawyer or tax advisor, as there are many factors and this is not something that can be simply answered.
In almost all cases you will need a trust tax return. I suggest that you consult with an accountant as a first step.
IMPORTANT NOTICE: The above response is not intended to, and does not, create an attorney-client, fiduciary or other confidential relationship with the responder. Neither does it constitute the providing of legal advice or services or the giving of a legal opinion by the responder. Such a relationship can only be created, and legal advice and/or legal services provided, pursuant to a written agreement with the responder. Accordingly, no obligations of any kind are assumed with respect to any matter or question presented. It should also be noted that legal issues are often time sensitive and legal rights may be lost or compromised if you do not act in a timely fashion.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
