Description: The beneficiaries of a revocable trust have no tax responsibility upon receiving income distributions at the death of the grantor. Grantors of a revocable trust are personally responsible for listing the income from the trust on personal income tax returns, and for paying any applicable taxes while living, the beneficiaries are not liable.
DA: 15 PA: 93 MOZ Rank: 79
Description: If they request an EIN for the trust, they must file a separate income tax return for it using Form 1041. This return would be due on the same date as your personal Form 1040. If you need an EIN for your revocable living trust, you can obtain one online by using the IRS EIN Assistant .
DA: 86 PA: 93 MOZ Rank: 97
Description: An irrevocable trust is a trust that cannot be modified, amended or revoked by the grantor (person that made the trust). An irrevocable trust is considered to be a separate entity for tax purposes by the Internal Revenue Service (IRS) and therefore a separate tax return must be filed for the trust.
DA: 35 PA: 19 MOZ Rank: 39
Description: The power to revoke is a typical retained power that makes a trust a grantor trust. Thus, the typical living trust used in estate planning is a revocable trust and hence a “grantor trust”. The income tax significance is that the taxable income generated by the grantor trust is reported on the income tax return form 1040 of the Trustor/Grantor.
DA: 56 PA: 3 MOZ Rank: 3
Description: The trust would still have to file an income tax return, but only for reporting purposes. It would issue a so-called K-1 to the grantor, who would then report the income on her tax return. Related Articles:
DA: 43 PA: 46 MOZ Rank: 17
Description: The trust may or may not have its own tax ID number. If the grantor is a trustee, then revocable trusts generally use her Social Security number, but if other’s are trustees it may have it’s own tax ID number and have to file its own return. But even in that case, it pays no tax at the trust level.
DA: 66 PA: 62 MOZ Rank: 92
Description: Unlike a revocable trust, an irrevocable trust is treated as an entity that is legally independent of its grantor for tax purposes. Accordingly, trust income is taxable, and the trustee must file ...
DA: 59 PA: 41 MOZ Rank: 64
Description: Revocable Trust Deadlines. If the trust was revocable during the grantor's lifetime, you and his executor can submit one tax return instead of two. If you and the executor both agree, she can file ...
DA: 72 PA: 69 MOZ Rank: 25