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1041 trust income allocation Expand / Collapse
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Posted 8/16/2006 11:27:39 AM
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In a revocable trust that became irrevocable due to incompetancy of income beneficary who died on 2/28, does year's income get allocated pro rata (2/12 and 10/12) or based upon available accounting results?

Marvin Freedman
Post #185
Posted 8/16/2006 12:22:36 PM
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I've always used actual results. For example, my fee would have been paid in your case after the date of death so the remainder beneficiaries would get the benefit of it.

I make up a worksheet with the total amounts in one column and then  pre-death and post-death colums then allocate each item of income and expense.

I believe that you can do this any consitent way but the method I use is easier for the beneficiaries to understand.

Mary Kay Foss

Post #186
Anonymous
Posted 10/4/2006 9:45:07 AM




You need to check the trust document. Many times it will state that all undistributed income is to be passed on to the next beneficiary (ie the remainderman). If the document is silent, then yes you must pro-rate.
Post #222
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