decedant has a living trust to distribute assets; he died in july 2008. only income is $15,000 from annuity; most assets distributed; do i do a simple trust 1041 with pass through via K-1's of 15,000?
It's a complex trust, because you distributed either more or less than just the current year's income.
You've got a trust accounting issue as to whether the annuity distribution is properly attributable to income (income and tax liability pass out to benes) or corpus (taxable on the trust's return, which has more-compressed brackets, but maybe deductions that could offset it above the line). Depending on the terms of the trust, the trustee may have discretion.
