Special Needs Trust 1041 form?

[Lydarose]

What is the name of your state (only U.S. law)? Illinois

My mother set up a special needs trust for my disabled sister in June of 2008 which was to be the recipient of a life insurance policy after my mother's death. This was set up with a legal aid lawyer and I am the trustee. Well, I then obtained EIN number for the trust and set up a bank account with a whopping sum of $100.00 in it. Now mind you, the fee is $6.00 a month so it has dwindled to $52.00.

Once this was set up, I put everything away and didn't think much of it except when I would get the monthly bank statements and check to make sure there were still funds to cover the bank fees.

My mother passed away about three weeks ago, and I am finally getting around to sending in life insurance claim forms to get the ball rolling for the special needs trust as well as find a suitable supportive care situation for my sister. I just looked over the letter I received from the IRS with the EIN number and it says that I must file a 1041 form by 4-15-09, tomorrow, yikes! Is this really necessary for less than $100.00?

The lines are busy at the irs...no surprise.

 

[LdiJ]

What is the name of your state (only U.S. law)? Illinois

My mother set up a special needs trust for my disabled sister in June of 2008 which was to be the recipient of a life insurance policy after my mother's death. This was set up with a legal aid lawyer and I am the trustee. Well, I then obtained EIN number for the trust and set up a bank account with a whopping sum of $100.00 in it. Now mind you, the fee is $6.00 a month so it has dwindled to $52.00.

Once this was set up, I put everything away and didn't think much of it except when I would get the monthly bank statements and check to make sure there were still funds to cover the bank fees.

My mother passed away about three weeks ago, and I am finally getting around to sending in life insurance claim forms to get the ball rolling for the special needs trust as well as find a suitable supportive care situation for my sister. I just looked over the letter I received from the IRS with the EIN number and it says that I must file a 1041 form by 4-15-09, tomorrow, yikes! Is this really necessary for less than $100.00?

The lines are busy at the irs...no surprise.

Probably the easiest thing to do would be to download a form 1065 at irs.gov and send it in blank, with just a signature and the demographic information filled out.

The other alternative would be to send the IRS a letter stating that the trust had been set up, but was not funded until your mother passed away in 2009 and therefore had no 2008 income.

The 100.00 was not income to the trust.