Fiduciary Tax Filing Requirements

A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, for example, a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to another party, who, for example, has entrusted funds to the fiduciary for safekeeping or investment. Likewise, financial advisers, financial planners, and asset managers, including managers of pension plans, endowments, and other tax-exempt assets, are considered fiduciaries under applicable statutes and laws. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance, and trust in another whose aid, advice, or protection is sought in some matter. In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts.

If you are responsible for overseeing an estate or trust, you are the fiduciary of that estate or trust. This is the tax that is paid on income received by estates and trusts.

The fiduciary of a domestic decedent's estate, trust, or bankruptcy estate files Form RI-1041 to report:

• The income, deductions, gains, losses, etc. of the estate or trust.
• The income that is either accumulated or held for future distribution or distributed currently to the beneficiaries.

Any income tax liability of the estate or trust.

The fiduciary of a RESIDENT estate or trust must file a return on Form RI-1041 if the estate or trust:

1. is required to file a federal income tax return for the taxable year, or
2. had any Rhode Island taxable income for the taxable year.

 The fiduciary of a NONRESIDENT estate or trust must file a return on Form RI-1041 if the estate or trust had income or gain derived from Rhode Island sources.

Definitions

A RESIDENT ESTATE is the estate of a decedent who at his or her death was a resident individual of Rhode Island.

A RESIDENT TRUST means:

(A) A trust created by a will of a decedent who at his or her death was a resident individual of Rhode Island, or

(B) A revocable trust which becomes irrevocable upon the occurrence of any event (including death) which terminates a person's power to revoke, but only after the event, and only if the person having the power to revoke was a Rhode Island resident individual at the time of such event, or

(C) An irrevocable trust created by or consisting of property contributed by a person who is a resident individual in this state at the time the trust was created or the property contributed (a) while such person is alive and a resident individual in this state, and (b) after such person's death if such person died a resident individual of this state, or

(D) An electing small business trust under regulation 1.641(c)-1 of the Internal Revenue Code,

(E) In cases A, B and C such trust is only a resident trust to the extent that the beneficiaries are Rhode Island residents.

Fiduciary tax is subject to the same estimated payment rules as the 1040 return. 

Tax returns must be filed and paid by the 15^th day of the fourth month following the close of the taxable year.  For calendar year estates and trusts, this would by 04/15.

Fiduciary tax may be required to file an extension request for additional time to file.

All estates and trusts must complete Schedule I of Form RI-1041.

If the trust has a non-resident beneficiary, follow the instructions for a nonresident estate or trust.

Resident Estates and Trusts: (1) Complete Schedule I on page 1 of Form RI-1041 and enter 1.0000 on page 1, line 9. (2) If the estate or trust is claiming credit for income taxes paid to another state, complete Schedules I and III on page 2 of Form RI-1041.

Nonresident Estates or Trusts: (1) If the taxable income of the estate or trust is derived solely from Rhode Island sources, complete Schedule I on page 2 of Form RI-1041 and enter 1.0000 on page 1, line 9. (2) If the estate or trust has taxable income both within and without Rhode Island, complete Schedules I and II on page 2 of Form RI-1041.

Please go to our Fiduciary Income Tax Forms page for instructions and forms. Returns may be mailed to the Division of Taxation.

You may also find more information on How to File and Pay on our main Personal Income Tax page.

Yes.  The fiduciary of a resident estate or trust is entitled to a credit against its Rhode Island tax liability for income taxes paid to other states. The credit cannot exceed the Rhode Island tax liability on the RI-1041.

If state income tax has been paid to more than one other state, Form RI-1041MU must be completed showing a separate calculation for each state.