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Bart Smith settled the Smith Children’s Trust on September 30, 2012
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Bart Smith settled the Smith Children’s Trust on September 30, 2012 (EIN: 45-1792583).  In 2016, the Trust had items of income and expense as follows:

                    Amount Allocable to
                    Income        Principal

Qualified Dividends            $23,149
Ordinary Dividends             3,319
Rental income from house         21,250
Charitable Gift to Salvation Army     10,000
Tax-exempt interest             18,000
Rental expenses             3,575
Trustee’s fee                850    $    850
Fee for preparation of tax return    725
Capital gain on sale of stock                18,173
Distribution of income:
    Frank                17,150
    Sally                12,200

The trust agreement appointed Smalls Bank and Trust as its trustee with broad discretionary authority, including the Trustee’s authority to distribute income to Frank and Sally during its 20-year term.  The trustee has decided to allocate a portion of the estimated taxes to the beneficiaries this year. On July 1, 2032, the Trust will terminate and the assets will be distributed equally to Frank and Sally, irrespective of any distributions the beneficiaries received during the life of the Trust (i.e. separate shares are not maintained for Frank and Sally).  The Trustee has never allocated any estimated tax payments to the beneficiaries and the Trust provides that capital gains are to be treated as “principal” by the Trustee.

Smalls Bank and Trust    Frank Smith        Sally Smith
189 24th St.        5241 Union        7152 Forest
Port Huron, MI 48007    Portsville, MI 48018    Livonia, MI 48054
EIN:  38-1212853    SS:  287-49-1715    SS: 287-48-2372

Please prepare the 2016 Form 1041 and any other form or schedule required for the Smith Children’s Trust.  This Return will be due on or before class June 15, 2017.
 

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Bart Smith settled the Smith Children’s Trust on September 30, 2012
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  • Submitted On 18 Jun, 2017 04:05:51
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