IRS Form Schedule K-1
IRS Form Schedule K-1 is a tax form used to report the income of an Estate or Trust to its partners, shareholders, or beneficiaries.
After a death, a Schedule K-1 may be used to report the income to its Beneficiaries or Heirs. The Schedule K-1 will report each beneficiary's share of the entity's income, deductions, and credits for the tax year.
If a deceased person had assets held in a trust, the income of the trust will be reported on Schedule K-1 and distributed to beneficiaries. Beneficiaries then use this information to complete their own individual tax returns.
The rules and requirements regarding Schedule K-1 can be complex and may vary depending on the circumstances and often best handled by a Certified Public Accountant or Estate Attorney to ensure that all financial and legal requirements are met.