Enter data for special allocations
Special allocations to beneficiaries are rarely used. The most common example is when a beneficiary dies and the trust instrument dictates that all items of income/expense earned/incurred up until date of death must be specially allocated.
Follow these steps to enter data for special allocations.
- In theOrganizer, go toBeneficiary Info (1041).
- SelectBeneficiary Data, thenBeneficiary Information.
- Open the beneficiary's name you're specially allocating to.
- As always, you'll need to consult the trust document, but if the decedent beneficiary received a prorata share up until the date of death, consider simply using a dollar amount for that beneficiary, then enter percentages for the other beneficiaries.
- SelectGeneral Beneficiary Informationand enter a dollar amountRequireddistribution for the decedent. Then use theBeneficiary namedrop-down to enter aPercentagedistribution for the remainder beneficiaries. Make sure the percentages entered for the remaining beneficiaries equals the distribution total. For example, distribution total = 100% required. Bene 1 = 4,000 required. Bene 2 and Bene 3 both = 50% required.
- Otherwise go to theSpecial Allocations (By Beneficiary)folder. Be careful to enter in the proper column and for the proper line item. If you're not certain, drill down on the amount field to get to the proper special allocations field.
Special Allocations distributions are considered 1st (Tier 1 if entered as Required). - Go to theMisc Allocation Optionsfolder in theBeneficiary Info (1041)folder.
- SelectSpec Allocation - Options.
- Select the special allocation options that are right for you. This will depend on how you chose to enter data in the steps above.
- Do a full recompute and reviewBeneficiary Allocations. You may need to revise special allocation entries if that beneficiaries amounts don't appear in the same section as remainders.
