How to file taxes on a trust

What is the name of your state? NC

I know that I need to file income taxes for my recently deceased mother from January 1 to the date of her death. She left real estate property in trust for my brother and I. This property has rental units on it that produce a total income of $4200 a month. The trust states that all debts (totaling about $1400 a month) are to be paid by the trust before the assests are distributed and the trust disolved. The property and its income are the only assests. This may not be resolved for quite awhile. I also have posts on Real Estate General Questions and Wills and Probate if you want more information.

How do we file taxes for the trust? Is there a special form? There is a separate checking account in the name of the trust to deposit the rent checks and pay the debts. Is it filed once a year as with personal income tax?

Thanks for any help or advice you can give.

[abezon]

The trust has to file a return every year. I suggest you go to a tax preparer, at least for the first year.

I was also wondering how I would claim the income on my1040 after the trust is settled. For the past two years I have not had to pay any taxes. I retired from the Air Force with a 50% disability which only means that 50% is service related and so 50% of my retirement pay is not taxable. I also receive social security disability. I send in a W4 each year to exempt taxes from being withheld since my total deductions are much more than my total income.
I will receive about $1200 of the income but if I have to pay half of the expenses including the mortgage my net income would be around $500. Because this income is not a salary would I have to claim it quarterly or can I just give the total for the year?

[abezon]

When the trust files its return, it will also file K-1s for each beneficiary. The income will be listed on the K-1 and various line entries are included in your tax return. If you get a tax program, it should include a K-1 entry screen and send the numbers to the right places automatically.

What do I do after the Trust is dissolved. I won't really have any proof of the income I receive from the renters. Since it is not a salary there will be no withholding tax. Will I need to file an estimate quarterly and pay estimated taxes on the rent income or do I just add the total for the year when I file my 1040?
Like I mentioned before I have been sending in a w4 exemption because the standard deductions are more than my taxable income due to my military disability.