An A-B Trust Part One

[Max W]

I am breaking this topic into 2 parts to keep the threads straight.

Husband and wife had an A-B trust created.  Four years ago, she died and the B trust was created.

Husband died last year in June.  Using a section 645 elecion, only an Estate return would be needed.  

1. As I calculate, the deadline for election and extension is Sep. 15. Is this correct.

2. Does the conversion to the Estate require a new EIN?

House, only asset was sold in May of this year.  

Next, part 2

 

[DANRVAN]

1 hour ago, Max W said:

1. As I calculate, the deadline for election and extension is Sep. 15. Is this correct.

Yes,  the year end for estate is May 31, 2019, due date 9/15/19.

 

1 hour ago, Max W said:

2. Does the conversion to the Estate require a new EIN?

That depends.  If there is both an estate and trust then EIN for both.  If there is no estate and you are electing to file the QRT as an estate then use EIN for the trust obtained after DOD.

[Max W]

Thank you. Very helpful.

[Max W]

One more thing.  Does the 645 election have ro be made before filing the extension?

[Max W]

I think I found the answer.  The election is due by the due date of the return, or extension.  So, the extension can be filed and the election (645) can be filed up to 5.5 months later.

[Hahn1040]

for my client: there is no estate and she are electing to file the QRT as an estate then use EIN for the trust obtained after DOD.

so what is the name on the return:  Estate of  Sally Taxpayer or Sally Taxpayer Trust?  The EIN is in the name of the trust, so it makes sense that it is named the trust.  However, the election is to treat it as an estate. 

sometimes, you think of somethings for so long.... nothing makes sense! Thanks!!!

[DANRVAN]

3 hours ago, Hahn1040 said:

so what is the name on the return:

The name on the return needs to match the name on the EIN.

[Hahn1040]

thank you so much!

deep down, that is what I thought, but I was hung up on that you check the "estate" box.

that certainly makes sense- name has to match the EIN!