The IRS provides annual versions of Form 1041. Where the return is for a fiscal year or a short tax year (less than 12 months), fill in the tax year space at the top of the form.

Note: If amending for an NOL carryback, also check the “Net operating loss carryback” box in item F.

If the total tax on line 24 is larger on the amended return than on the original return, pay the difference with the amended return. However, adjust this amount if there is any increase or decrease in the total payments shown on line 26.

Attach a sheet that explains the reason for the amendments and identifies the lines and amounts being changed on the amended return.

Decedent's Estate - An estate of a deceased person is a taxable entity separate from the decedent. It generally continues to exist until the final distribution of the assets of the estate is made to the heirs and other beneficiaries. The income earned from the property of the estate during the period of administration or settlement must be accounted for and reported by the estate, which is done on Form 1041. This reporting should not be confused with that done on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, which is used to compute the estate tax when the value of the decedent’s gross estate exceeds the amount of the estate tax exclusion for the year of death or to transfer the deceased spousal unused exclusion (DSUE) amount to the surviving spouse. 

Executor – The legal definition of an executor is a person or institution appointed by the Testator to carry out the directions and requests in the Testator’s Last Will and Testament and to dispose of the property of the Testator in accordance with the provisions of the Last Will and Testament after his or her death.Other terms used for an executor include:

Fiduciary - A fiduciary is any person in a position of confidence acting on behalf of any other person. A fiduciary assumes the powers, rights, duties, and privileges of the person or entity on whose behalf he or she is acting. Examples of fiduciaries include administrators, conservators, designees, executors, guardians, receivers, trustees of a trust, trustees in a bankruptcy, personal representatives, persons in possession of property of a decedent’s estate, or debtors-in possession of assets in any bankruptcy proceeding by order of the court.

Fiduciary Duty - When someone has a fiduciary duty to someone else,the person with the duty must act in a way that will benefit someone else financially. The person who has a fiduciary duty is called the fiduciary, and the person to whom the duty is owed is called the principal or the beneficiary. A fiduciary accepts legal responsibility for duties of care, loyalty, good faith, confidentiality, and more when serving the best interests of a beneficiary. Strict care must be taken to ensure that noconflict of interestarises to jeopardize those interests.

Intestate – Died without having made a will.

Probate – The legal definition of probate is the act of proving that an instrument purporting to be a Last Will and Testament was executed in accordance with legal requirements and of determining its validity thereby.In addition, a Probate Court is a special court of law having specific jurisdiction of proceedings incident to the settlement of a decedent’s estate.

When someone dies, their assets fall into two broad groups for probate purposes. Those that pass directly to a co-owner or beneficiary upon the original owner's death generally include:

The second group of assets that donn't go directly to a beneficiary or co-owner include those passed down through a will, or through state laws of intestacy if there is no will. Examples can include:

Beneficiaries generally can't take legal ownership of these assets without the probate process. Thus, probate is often required even if there is a will. Some states don’t require probate for estates of small, specified value or when assets are transferred to a surviving spouse.

A properly set up and funded living trust can avoid probate because the trust, not the individual, is the owner of the assets when the individual dies. This avoids the high costs of the probate process and generally will make the decedent’s assets available sooner to the beneficiaries. However, not all trusts will avoid probate. For example, the assets passing to a testamentary trust will still need to be probated. A testamentary trust is a trust created in an individual’s will upon the death of that individual.

Testator – Testator is the legal term for an individual who creates a will or gives a legacy. For example,if Art has a will drafted and he executes it, then Art is referred to as the testator.Trust - A trust is a legal entity with separate and distinct rights, like a person or corporation. In a trust, a party known as a trustor gives another party, the trustee, the right to hold title to and manage property or assets for the benefit of a third party, the beneficiary. A Trust implies the bifurcation of an asset into legal title and equitable title. The Trust holds the legal title to the asset; the beneficiary holds the equitable title to the asset.

Can a trust be changed, altered, amended, or revoked? The answer is yes if the trust is a revocable trust and no if it is an irrevocable trust.

Trustor - A trustor isthe person or entity who creates a trust. Trustors can be a single person, more than one person (commonly spouses or domestic partners), or an organization. In some states, trustors are called “grantors” or “settlors.” A trustor generally has the following responsibilities:

Trustee - A trustee takes legal ownership of the assets held by a trust and assumes fiduciary responsibility for managing those assets and carrying out the purposes of the trust. The trustee has the right to manage a trust asset unilaterally, without direction or input from the beneficiaries and a trustee can be one of the beneficiaries of a trust.

Trustees when accepting their role assumefiduciary responsibilityfor the trust. Thus, it is their legal duty to act in the best interest of the trust’s beneficiaries. They can be held legally responsible or removed from the role for not living up to that standard.

Depending on the type of trust, a trustee’s duties may also include:

A trustee’s specific duties will depend on the type of trust they’re managing, as well as the instructions laid out in the declaration of trust. Responsibilities can also vary based on whether the trustor is deceased or if they are incapacitated. If the trustor is incapacitated, a trustee may be directed to use trust assets to care for them.