Do I pay Federal taxes on a trust where I am the Grantee and the Grantor is deceased?
My mom set up a trust for me but now the account is sitting there since she passed away in 2023. Do I pay Federal taxes?
Answers
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My condolences on the loss of your mother.
It's likely you will still need to include that in your return. Any distributions from the trust to you are usually taxable. If there is a Schedule K-1 from the trust that has been or will be issued to you, that K-1 will need to be filed in your return. In your FreeTaxUSA account, this option is under the Income menu > Uncommon Income > Estate and Trust Income.
After entering your K-1, and other tax information for your situation, our software will calculate what, if any, taxes are owed from that. For your late mother's trust, there may need to be a 1041 filed, which FreeTaxUSA does not support.
