Surviving grantor in revocable trust died in 2009, leaving rental property to two sons. Trust doc says" trustee shall hold, administer and distribute assets" on this death. Can the sons operate as trust indefinitely, filing 1041, or form 1065?
First, it depends on the trust instrument. If the trust can hold the assets with no designated time for distribution, it could go on forever, if the state of situs has no rule against perpetuities.
However, if the rental property leaves the trust, its probably a Schedule E rental. Potentially a partnership but I don't necessarily think joint ownership of a property is a partnership; despite IRS and Lacerte warnings.
