Preparing final return for estate (contested Will handled through probate) that had no income 2020 only $65K cash remaining from 2019 home sale proceeds. In Jan 2020 those same proceeds poured over into the Living Trust of the couple for the benefit of the surviving spouse.
In filing the final 1041 for the estate, should the information about this 'transfer of assets' be reported on a K-1 to the Trust? At some point the funds will either be distributed for the surviving spouse or pass to the remaining beneficiaries.
As well, the same Trust has no income in 2020, and less than $300 in 2021 (no future income expected).
Is it appropriate to list the $65K on line 9-Directly apportioned deductions going to the Trust as the Beneficiary? How does the paper trail connect the distribution of these funds from one Entity to the next, i.e. Estate to Trust to Beneficiar(ies). --- or by definition of a pour over Will, does the K-1 not take place until there are distributions from the Trust?
Thanks!
In filing the final 1041 for the estate, should the information about this 'transfer of assets' be reported on a K-1 to the Trust? At some point the funds will either be distributed for the surviving spouse or pass to the remaining beneficiaries.
As well, the same Trust has no income in 2020, and less than $300 in 2021 (no future income expected).
Is it appropriate to list the $65K on line 9-Directly apportioned deductions going to the Trust as the Beneficiary? How does the paper trail connect the distribution of these funds from one Entity to the next, i.e. Estate to Trust to Beneficiar(ies). --- or by definition of a pour over Will, does the K-1 not take place until there are distributions from the Trust?
Thanks!