Fiduciary

[Steve B.]

Taxpayer is a guardian of his sister's trust for the past few years.

I would do his sister's 1040 every year. Last year she pasted away.

He brings information in this year for sister with her social security number on all the investment information.

I guess I'll report everything on the 1041?

Thanks

[Gretel]

It's not that easy.

You need to do a final 1040 up to the date she died and prorate the income. If all investments were transfered right away to heirs they need to report the income after death and it should not be included in decedents return.

If investments were held in estate for a while that portion of income needs to be reported on 1041.