1041-when the grantor dies

[taxquestion]

Grantor Trust was created in February. Grantor was not the trustee. Grantor died in the same year in October. Can we file one 1041 return? or do we need to file a 1040 & 1041?

[Burke]

Grantor died in October of 2009? Then you would have to file an income tax return for him (Form 1040) for any income received in his name and SSN for the year up to his date of death (Jan - Oct). Was the trust formed in February a Revocable Living Trust? Then, it is disregarded for income tax purposes. No 1041 filed unless it received taxable income after DOD.

If it was NOT an RLT, but another type of trust, then the trust may have to file an income tax return (Form 1041) if it received taxable income during its tax year (Feb - Dec). Need a little more information here.