Form 1041 is U.S. Income Tax Return for Estates and Trusts. Trusts are required to file Form 1041 when (1) its income is at least $600, or (2) it has a nonresident alien as a beneficiary.
But a trust classified as a grantor trust isn't required to file Form 1041 if the individual grantor reports all the grantor trust incomes/allowable expenses on his own Form 1040. For tax purposes, an irrevocable trust is treated as a simple, complex, or grantor trust according to the powers listed in establishing the trust.
With your federal return, yes. With your state return, see the instructions. But if in doubt, you won't get into any trouble for doing it. But get your taxes filed or at least an extension today even if you can't find your W-2 forms. If you file without your W-2 forms, the IRS will send you a letter later asking you to send them in.
You need to review the provisions of the trust to determine if the trust allows a "beneficiary buy-out".
If when your spouse passed away, a Trust or an Estate was setup to manage their remaining assets, then you are required to file a tax return for the trust or estate and the 1099-c would need to be included on that tax return. If no Trust or Estate was established, then you do not need to file an Estate tax return. Your spouse's final return would be processed either jointly with yours or individually depending on how you have historically filed and your individual tax situation. The 1099-C would NOT be included in that return.
NO. Only the "current year" tax returns can be filed electronically. The deadline for filing the 2010 return was October 15th. For the next tax year (2011) the IRS will start accepting electronically filed returns on January 17th of 2012. Click the link below to visit the IRS website that lists the Prior Year Forms and Publications. You will need to enter your form number (probably 1040) into the box and then click the search button.
You file an amended tax return, on Form 1040X, which is pretty short and simple. It mostly asks for just the changes you need to make. If you got another W2, for example, you would attach it to the 1040X.
An irrevocable trust and an estate are two separate and distinct legal arrangements. If a person transfers their property to an irrevocable trust it is no longer part of their estate. You need to consult with an attorney who can review your situation, hear the details and explain your options.
By their very nature an irrevocable trust is very difficult to "undo". You need to consult with an attorney who is an expert in trust law in your state and also an expert in federal tax laws. You can gain some background regarding the difficulty of disabling irrevocable trusts at the link below.
You need to review the terms of the trust to determine the extent of the trustee's power.
In some cases, a trustee can seek court approval to dissolve an irrevocable trust if certain conditions are met. These conditions may include all beneficiaries agreeing to the dissolution, changes in circumstances necessitating the trust's termination, or if the trust's purposes have become impossible to achieve. It's important for the trustee to consult with legal counsel to understand the specific requirements and considerations involved in dissolving an irrevocable trust.
Trust law is one of the most complex areas of law. It depends on the instrument that creates the trust. You need to discuss this question with an attorney who specializes in trust law. Generally a trust set forth in a will is revocable by the testator during her life and irrevocable after her death.
you'd need to get a Loan against the house
Warning! An irrevocable trust is not created when the grantor (trustor) is also the trustee. By transferring their property to a trust of which they are the trustee the grantor has retained control over the property. Irrevocable trusts are usually set up for tax purposes. The grantor cannot retain any control over the property in order for the trust to qualify as an irrevocable trust. The trust you describe has failed and left the trust property exposed to creditors and taxes. You need to consult with an attorney who specializes in trust law and tax law.
The provisions for terminating the trust must be set forth in the instrument that created the trust. You need to review that instrument and look for your answer there.
To dissolve an irrevocable trust, you typically need the consent of all beneficiaries and the trustee, as well as court approval in some cases. Additional requirements may vary depending on the specific terms of the trust and applicable state laws. It is advisable to seek the guidance of an attorney specializing in trusts and estates to navigate the process successfully.
To set up an irrevocable trust for a grandchild, you typically need to work with an estate planning attorney who can help draft the trust document. You will need to fund the trust with assets, choose a trustee to manage the trust, specify the terms of the trust, and designate your grandchild as the beneficiary. Once the trust is established, the assets will be managed according to the terms you set forth for your grandchild's benefit.
There are all kinds of trusts and no single answer. Briefly: A revocable trust can be revoked by the maker (grantor or trustor) during their life. Most trusts automatically convert to an irrevocable trust upon the grantor's death when used in place of a will to transfer property to heirs. Testamentary trusts set forth in a Will are irrevocable after the death of the testator. The provisions can be changed during the life of the testator but cannot be changed after the testator has died. A living person can also create an irrevocable trust. What makes a trust irrevocable is that provisions cannot be amended by the grantor and the grantor cannot revoke the trust and regain possession of or control of the trust property. Anyone contemplating a trust should consult with an attorney who specializes in trust law and who has a good reputation. Trust law is one of the most complex areas of law and is entertwined with tax law.
An irrevocable trust cannot be added to the deed of a house. Once assets like a house are placed within an irrevocable trust, they are owned by the trust and not the individual, so they cannot be added to the individual's deed.