Stock Owned by Trust

[JohnH]

I don't work a lot with trusts, so maybe I can get some help here concerning a C-corp which has two shareholders.

One certificate is titled to "(shareholder name), trustee, RLT of 9/1/11" which comprises 55% of the total outstanding shares. The other certificate is titled to "ABC Irrrevocable Testamentary Trust Originally Dated xx/xx/xxxx" and this certificate comprises 45% of the total outstanding shares.

I'm trying to figure out how to complete Schedule G on the Form 1120. It appears to me that the 45% certificate needs to be listed in Part I of the Schedule G, and that the 55% certificate needs to be listed in Part II of the Schedule G, but simply under the shareholder's name without all the RLT language. A comment made about trusts in an unrelated thread makes me think I can ignore the RLT in situations like this but I'm not sure if that is the case.

Is that correct, or do both certificates need to be listed in Part I?

[Burke]

Well, I don't do C-Corps so haven't run into this before. Just throwing out a WAG, I think I would put both on Sche G. It's legal title is still a trust (the RLT) even though the grantor disregards it on his own tax return. And if the grantor should decease, then his heirs would own the stock proportionately according to the terms of his RLT.
PS: Trusts are a lot more fun than corporations!