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KateEA · 02-28-2009, 07:38 PM

Since the trust was funded by the parents, it's not self-funded so I assume that it has been filing a Form 1041 all along.

I'm not a trust expert, but I think SNT status is a legal distinction and not a tax distinction.

Since it has been filing 1041's, wouldn't that have been as a complex trust? There is a change in beneficiary now but the trust continues to exist, so two K-1's from the same 1041? Unfortunately I don't do many trust returns, but I do have one client with a self-funded SNT that does not file a separate tax return.

02-28-2009, 07:38 PM	#4 (permalink)
KateEA Status: Getting feet wet Join Date: Mar 2008 Posts: 37 Rep Power: 25	Since the trust was funded by the parents, it's not self-funded so I assume that it has been filing a Form 1041 all along. I'm not a trust expert, but I think SNT status is a legal distinction and not a tax distinction. Since it has been filing 1041's, wouldn't that have been as a complex trust? There is a change in beneficiary now but the trust continues to exist, so two K-1's from the same 1041? Unfortunately I don't do many trust returns, but I do have one client with a self-funded SNT that does not file a separate tax return.