Generally

• Most basic living trusts name the trustor, the person who created the trust, as the trustee. For example, Joe Bob creates the Joe Bob Living Trust in which Joe Bob serves as the trustee. Joe Bob does not need to file a trust tax return.
  
  

Considerations

• Although Joe Bob does not have to file a trust tax return, Joe Bob still needs to file a personal income tax return. On his personal income tax return, Joe Bob will treat all trust property and income as his own personal property and income.
  
  

Types

• If, however, Joe Bob creates the Job Bob Living Trust and he appoints Sue Beth to serve as the trustee, then Sue Beth must file a trust tax return every year that the trust exists.
  
  

Time Frame

• Assuming a trust tax return is required, the form 1041 must be filed by April 15, 2010, the same deadline for filing individual income tax returns.
  
  

Death

• Every trust must have a tax return filed when the trustor dies. For example, if Joe Bob dies in June 2011, his successor trustee must file a trust tax return for the Joe Bob Living Trust by April 15, 2012.