Form 1041

[Questionguy101]

I have a question about Form 1041. On the upper left question, it asks for the type of entity. How to determine the type of entity of a trust with a name like this:

<Name> BYPASS TR AS CREATED BY <Name> RVOC TR

What kind of document do we have to look at to make the determination?

[S T]

Bypass Trust

Usually the Bypass Trust receives property that is specified in the trust document from the decedent spouse, so that property is not subject to estate taxes. Other names for Bypass are AB Trust, Credit Shelter Trusts.

The entity type will more than likely be Simple Trust or Complex Trust. You should, however, have a copy of the Trust Agreement to be sure.

Sandy

[Questionguy101]

Usually the Bypass Trust receives property that is specified in the trust document from the decedent spouse, so that property is not subject to estate taxes. Other names for Bypass are AB Trust, Credit Shelter Trusts.

The entity type will more than likely be Simple Trust or Complex Trust. You should, however, have a copy of the Trust Agreement to be sure.

Sandy

Thank you.

Would it say it clearly on the Trust Agreement that whether it is a Simple Trust or a Complex Trust?

[S T]

No not in the Trust

Trust will not clearly state Simple or Complex Trust. First you have to determine what type of trust and what the trust says about distributions, etc (in Trust Papers) and then go to TB starting at page SB10-9 and it provides how to determine if it is a simple or complex trust is and which boxes you would check off. Has to do in part with distributions from the Trust

Sandy

[Gretel]

I agree. If complex or simple is determined by income and/or corpus distributions only. A trust can be simple one year and complex the next year.