What to do about a revocable trust was created after one spouse died?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What to do about a revocable trust was created after one spouse died?
The trust became a grantor trust once the second spouse died. Residential home lived in more than 2 years by the grantor was sold 3 years after her death. Therefore, the trust owned the home for 3 years before it was sold. Using the FMV (appraisal at time of death) as the basis in the home, there will be a gain. Does this gain need to be reported on Schedule D, Form 1041 or since this is a grantor trust and the trust held onto the house more than 2 years before the sale, would it qualify under the home-sale exclusion rule and therefore, not have to be reported at all on the Form 1041?
Asked on September 11, 2013 under Estate Planning, Kansas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
Based upon what you have written about if the grantor and beneficiary under the revocable trust lived in the home that was an asset of it, the home would qualify under the home-sale exclusion rule and therefore, not have to be reported at all on the Form 1041 if lived in for two plus years.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.