Multiple Trustees Statement

It is common for trusts to have multiple trustees, but it is very uncommon for fiduciary income tax returns to have attached the statement required when a trust has multiple trustees.

IRC §6012 lays out the filing requirements of for individuals, corporations, estates, and trusts. Subsection (b) defines some specific rules for “Fiduciaries and Receivers”.

IRC §6012(b)(5) states specifically that only one fiduciary is required to file a return (when there are multiple fiduciaries). And it requires a statement:

“… that the fiduciary has sufficient knowledge of the affairs of the person for whom the return is made to enable him to make the return, and that the return is, to the best of his knowledge and belief, true and correct.”

The regulation §1.6012-3(c) basically repeats the statutory language above, without providing any additional guidance.

Has anyone every filed a statement along with Form 1041?


Trust Matrix – Inter vivos Trusts

This table lays out the Income Tax and Estate Tax treatment of various inter vivos trusts (i.e. trusts funded during a taxpayers life).

Inter vivos
Trust Matrix
Estate Tax Inclusion
Excludable from Taxpayer’s Estate Includable in Taxpayer’s Estate
Income Tax Taxation Non-grantor Trust
  • Simple or complex inter vivos trust
  • Incomplete gift Non-Grantor Trust = ING (e.g. DING, NING)
Grantor Trust
  • Intentionally Defective Grantor Trust (IDGT)
  • Revocable Trust
  • QPRT (during initial trust term)
  • GRAT (during initial trust term)
  • CRAT and CRUT (during initial trust term)