Colorado Springs, CO asked in Estate Planning for Arizona

Q: What are the requirements for needing to file tax returns for a Revocable Living Trust and Probatable Estate in Arizona?

If a deceased person had both a Revocable Living Trust as well as Probatable assets, what are the requirements for Federal and Arizona State tax filing?

If the trust & estate are both settled in the same year the person dies, do the trust & estate need to file taxes?

Is there a dollar amount that triggers the need to file trust or estate taxes? If so, is it the value of the trust / estate or is it the amount of income in a year they procuce?

Would they need to be separate filings (i.e. 1 for trust & 1 for estate)?

Would the trust & estate both need their own Tax ID number (EIN, TIN, ITIN ??)?

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1 Lawyer Answer
Ilene L McCauley
Ilene L McCauley
  • Estate Planning Lawyer
  • Scottsdale, AZ
  • Licensed in Arizona

A: I am sorry for your loss. These are excellent questions. I will give you the general rules. Then I recommend you see an accountant who knows about filing income tax returns for trusts and for probate estates.

Legally a Probate Estate and a Trust whose Trustmaker is deceased (trust administration) are two different legal entities. That means the probate needs a tax identification number and the Trust Administration needs a separate tax identification number. Income tax returns for trusts and estates are filed on forms 1041 IRS, and I41 Arizona. One set of 1041 returns is filed for the probate and another set of 1041 returns are filed for the trust administration. That being said, you can elect to file these separate returns together.

I believe a knowledgeable accountant who is preparing the income tax returns for the probate and trust administration will be able to give you the right answer. Every situation is different.

BTW. You will also have to file final 1040 returns for the deceased person.

1 user found this answer helpful

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