Have a grantor trust (grantor (father)lived in CA) that became irrevocable on DOD of the settler. The beneficiary and trustee (daughter) is a dual citizen of Canada and US and lives in Canada. The daughter files a 1040 each year and claims the foreign income exclusion. The trust holds no US real estate. Its assets are vintage cars and two brokerage accounts. Do I have a trust filing requirement in the US?
It will depend on the income from the brokerage account. A 1041 must be filed if the trust has any taxable income, gross income of $600 or more (regardless of taxable income), or a beneficiary who is a nonresident alien.