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Posted by Bill on October 28, 2007, 5:13 am
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nellplotts@yahoo.com (Perplexed) posted:
> IRS says: "A trust filing as an estate under
> Section 645 election allows a Qualified
> Revocable Trust to be treated and taxed (for
> income tax purposes) as part of its related
> estate during the election period. Once the
> election is made, it cannot be revoked."
> I need to get a tax ID. Should I indicate that
> this is a QRT? Mother's estate is not so large
> as to be taxable, substantially under a million,
> maybe $500,000 in a stretch.
> What is the "election period:?
If you mother has established a "revocable living trust,"
upon her death it becomes "_irrevocable_." At that point,
the trust requires a tax ID -- to replace the decedent's
Social Security number.
If you are the executor or legal representative for your
mother's estate, see Pub 559. If you're simply winding up
her affairs, and filing a "final return," no new number
should be required. But if there's a trust which continues,
then a Tax ID is required, and the executor would issue K-1s
to beneficiaries for their shares and would file a return
using Form 1041.
Sounds like you would benefit from some advice from a tax
advisor, who should be able to answer your questions and set
you straight on the appropriate course for your situation.
Bill
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