It will depend on the trust agreement because paying the income tax on the trust as the grantor is not the test for getting a basis step-up. It's possible to set up grantor trusts that either do get the basis step-up or don't get the basis step-up. You'll need to work with your own advisors to get an answer for your specific situation.
@@strohmeyerlawpllc Thank you for answering the question. Would love to see you do a video showing what is the test for a Grantor Trust. I wonder if one of the test for step-up basis might be the revocability of the trust?
Unfortunately, we can’t give specific advice on this channel. You should work with a professional tax preparer who is familiar with your specific circumstances to file the appropriate returns.
Does a Grantor Trust where the grantor pays taxes on the trust during his lifetime get step-up basis benefits after the grantor dies ?
It will depend on the trust agreement because paying the income tax on the trust as the grantor is not the test for getting a basis step-up. It's possible to set up grantor trusts that either do get the basis step-up or don't get the basis step-up. You'll need to work with your own advisors to get an answer for your specific situation.
@@strohmeyerlawpllc Thank you for answering the question. Would love to see you do a video showing what is the test for a Grantor Trust. I wonder if one of the test for step-up basis might be the revocability of the trust?
How do I report an overpayment of estimated taxes for a grantor trust? Will I still need a 1041 or just a 1040 since it is a grantor trust?
Unfortunately, we can’t give specific advice on this channel. You should work with a professional tax preparer who is familiar with your specific circumstances to file the appropriate returns.