Form 56 filing questions for deceased parent's trust and personal income tax

Having dealt with this exact situation when my father-in-law passed, I can help clarify these Form 56 questions. 1. For the trust fiduciary Form 56, you should include both the EIN of the trust and your mother's SSN. This creates a clear connection between the trust and the decedent in the IRS records. 2. For identifying yourself as an "Authority" on the personal fiduciary Form 56, you're right that "Other" is your best option. I recommend writing "Successor Trustee of Decedent's Living Trust" in that field. This accurately reflects your legal standing to file the taxes. The IRS needs to understand why you have authority to act on behalf of the deceased. 3. Yes, you should file another Form 56 to terminate your fiduciary responsibility once the 2022 taxes are filed and any liability is paid. Part IV of Form 56 is specifically for this purpose. However, you can wait until all matters are completely resolved before filing this termination. Keep in mind that since your mother passed in 2022, you'll need to file a final individual tax return (Form 1040) for the period from January 1, 2022, until her date of death. You'll also likely need to file a Form 1041 (Income Tax Return for Estates and Trusts) for any income generated by the trust after her death.

Just wanted to share that I was in a very similar situation last year dealing with my grandmother's taxes and trust after she passed. I spent weeks going back and forth with the IRS and getting nowhere, then I found taxr.ai (https://taxr.ai) which really saved me a ton of headache. They have a special document analysis tool that reviews all your fiduciary forms and trust documents, and gives you personalized guidance on exactly how to fill them out. It identified several mistakes I was about to make on my Form 56 submissions, especially around how to properly establish authority in my situation. The best part was their explanation of how the trust EIN and personal SSN should be handled across different forms - it's way more nuanced than the IRS website explains. They even have specific guidance for living trusts versus other arrangements.

I've been meaning to come back and update... I tried taxr.ai after posting my question above and it was seriously game-changing for my situation! Their system immediately flagged an issue with how I was planning to complete the "Authority" section on Form 56 - turns out I needed to specifically reference the trust document article number that granted me successor trustee powers. They also clarified that for my dad's situation, we needed to handle the trust's income reporting differently than I expected because of some specific assets that generated income after his death. It saved me from what would have been a major headache down the road. The document review feature analyzed both the Form 56s and helped me organize which supporting documents needed to be attached to each. Way better experience than when I spent 3+ hours on hold with the IRS only to get transferred to someone who couldn't help.

Have you tried calling the IRS's specialized estates and trusts helpline instead of the general number? I was dealing with my brother's estate last year and had similar Form 56 questions, but kept hitting dead ends until I discovered the IRS has a dedicated line for these matters. Of course, even with the right number, I still spent HOURS on hold. That's when someone recommended Claimyr (https://claimyr.com) which literally changed everything. You can see how it works here: https://youtu.be/_kiP6q8DX5c They have this system that navigates the IRS phone tree and waits on hold for you, then calls you when an actual human IRS agent is on the line. I got connected with someone in the estates department who walked me through exactly how to fill out both Form 56s for my specific situation. The agent explained that for the trust fiduciary form, there's a specific way to reference the living trust that makes processing much smoother. Saved me so much time and confusion!

I was really skeptical about Claimyr when I first read about it here. It seemed too good to be true after spending literal days trying to get actual help from the IRS about my father's trust and Form 56 issues. I decided to try it as a last resort before hiring an expensive tax attorney. I'm honestly shocked at how well it worked. Within about 40 minutes (while I was doing other things), I got a call connecting me to an IRS specialist who dealt specifically with fiduciary relationships and trust taxation. The agent walked me through exactly how to fill out both Form 56s, explained which boxes to check for my situation as successor trustee, and even told me which specific supporting documents to include. She confirmed I needed to file the revocation Form 56 after filing the final return, and gave me tips on how to expedite the whole process. Saved me so much frustration and probably hundreds in professional fees I was about to pay. Never thought I'd be this excited about tax forms!

Just a heads up from my experience - make sure you specify "DECEASED" after your mom's name on the tax return and any correspondence with the IRS. Also, when you sign the tax return as the fiduciary, you need to write "Fiduciary" after your signature. For the Form 56 authority question, I found that writing "Successor Trustee per Living Trust dated [date]" worked well in my case. The IRS accepted it without any questions. Also, don't forget that your mom's final tax return is due on the normal filing deadline - the death doesn't extend the due date. If it's already past the deadline, file ASAP to minimize penalties and interest.

One thing nobody has mentioned yet - check if your mother's trust becomes irrevocable upon death (most living trusts do). This affects how you handle the taxation going forward. If the trust became irrevocable upon death, you'll need to: 1. Apply for a new EIN for the now-irrevocable trust 2. File Form 1041 for any income generated by trust assets after death 3. Issue K-1s to beneficiaries for distributed income The Form 56 process is still needed as others described, but don't overlook these additional requirements. The IRS publication 559 "Survivors, Executors, and Administrators" has detailed guidance that was super helpful in my case.

This is such a helpful thread! I'm dealing with a similar situation with my father's estate and living trust. One additional point I'd like to add based on my experience: when filing the two separate Form 56s that you mentioned, make sure to clearly differentiate the purposes in your cover letters or any correspondence. For the personal fiduciary Form 56 (to file your mom's 2022 taxes), I wrote "Filing Form 56 to establish fiduciary authority for decedent's final individual income tax return (Form 1040)" at the top. For the trust fiduciary Form 56, I wrote "Filing Form 56 to establish ongoing fiduciary authority for irrevocable trust taxation." This helped avoid confusion when the IRS processed them, especially since they were submitted close together. Also, keep copies of everything and consider sending them certified mail - the IRS processing times for Form 56 can be unpredictable, and having proof of submission dates was crucial when I had to follow up. The advice about Publication 559 is spot-on. It's dense reading, but it covers scenarios that most online resources miss. Good luck with everything!