Form PA-41 "Pa Fiduciary Income Tax Return" - Pennsylvania

What Is Form PA-41?

This is a legal form that was released by the Pennsylvania Department of Revenue - a government authority operating within Pennsylvania. Check the official instructions before completing and submitting the form.

Form Details:

  • Released on June 1, 2019;
  • The latest edition provided by the Pennsylvania Department of Revenue;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form PA-41 by clicking the link below or browse more documents and templates provided by the Pennsylvania Department of Revenue.

ADVERTISEMENT
ADVERTISEMENT

Download Form PA-41 "Pa Fiduciary Income Tax Return" - Pennsylvania

Download PDF

Fill PDF online

Rate (4.8 / 5) 68 votes
PA-41
2004110058
PA Fiduciary Income Tax Return
PA-41 05-21
(FI)
2020
PA Department of Revenue
OFFICIAL USE ONLY
PLEASE PRINT IN BLACK INK. ENTER ONE LETTER OR NUMBER IN EACH BOX. FILL IN OVALS COMPLETELY.
START
Fiduciary’s Daytime Telephone Number
Federal Employer Identification Number
Decedent’s Social Security Number
HERE
PLEASE WRITE IN THE FEIN & SOCIAL SECURITY NUMBER ABOVE
Extension Requested
Name of Estate or Trust (See Online Detailed Instructions)
Amended PA-41
Fiscal-Year Filer
__
__
__
/
/
MM/DD
Name and Title of Fiduciary
FY beginning
__
__
__
/
/
and ending
MM/DD/YY
Residency Status. Fill in only one oval.
Address of Fiduciary (Street Number and Name, etc.)
R Pennsylvania Resident
N Nonresident
If “N”, Name of State
City or Post Office
State
ZIP Code
Final Return
MM/DD/YY
__
__
__
/
/
F Enter Ending Date:
Country Code
Dollars
Cents
Submit all required Pennsylvania supporting schedules.
DOLLARS
CENTS
If Line 3, 4 or 5 is a LOSS, fill in the oval next to the amount.
1.
1. INTEREST INCOME and GAMBLING and LOTTERY WINNINGS. . . . . . . . . . . . . . . . . . . .
2.
2. DIVIDEND AND CAPITAL GAINS DISTRIBUTIONS INCOME. . . . . . . . . . . . . . . . . . . . . . .
LOSS
3. NET INCOME or LOSS from the Operation of a Business, Profession or Farm.
3.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LOSS
4. NET GAIN or LOSS from the Sale, Exchange or Disposition of Property.
4.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LOSS
5. NET INCOME or LOSS from Rents, Royalties, Patents or Copyrights.
5.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
6. ESTATE or TRUST INCOME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. TOTAL INCOME. Add only the positive income amounts from Lines 1, 2, 3, 4, 5 and 6.
7.
Do not add losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
8. DEDUCTIONS from PA SCHEDULE DD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
9. NET PA-TAXABLE INCOME. Subtract Line 8 from Line 7. . . . . . . . . . . . . . . . . . . . . . . . . . .
10.
10. PA TAX LIABILITY. Multiply Line 9 by the tax rate 3.07 percent (0.0307). . . . . . . . . . . . . . . .
11.
11. TAX WITHHELD FOR NONRESIDENT BENEFICIARIES. See the instructions. . . . . . . . . .
12.
12. TOTAL PA TAX LIABILITY. Add Lines 10 and 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.
13. 2020 ESTIMATED PAYMENTS and CREDITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.
14. NONRESIDENT TAX WITHHELD from PA SCHEDULE(S) NRK-1. . . . . . . . . . . . . . . . . . . .
15. TOTAL CREDIT for TAXES PAID by PA RESIDENT ESTATES or TRUSTS
15.
to OTHER STATES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.
16. TOTAL OTHER CREDITS from PA SCHEDULE OC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
17. PA INCOME TAX WITHHELD.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
18.
18. TOTAL PAYMENTS and CREDITS. Add Lines 13, 14, 15, 16 and 17. . . . . . . . . . . . . . . . . .
19
19. USE TAX. See the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
EC
FC
2004110058
Reset Entire Form
TOP OF PAGE
NEXT PAGE
PRINT
PA-41
2004110058
PA Fiduciary Income Tax Return
PA-41 05-21
(FI)
2020
PA Department of Revenue
OFFICIAL USE ONLY
PLEASE PRINT IN BLACK INK. ENTER ONE LETTER OR NUMBER IN EACH BOX. FILL IN OVALS COMPLETELY.
START
Fiduciary’s Daytime Telephone Number
Federal Employer Identification Number
Decedent’s Social Security Number
HERE
PLEASE WRITE IN THE FEIN & SOCIAL SECURITY NUMBER ABOVE
Extension Requested
Name of Estate or Trust (See Online Detailed Instructions)
Amended PA-41
Fiscal-Year Filer
__
__
__
/
/
MM/DD
Name and Title of Fiduciary
FY beginning
__
__
__
/
/
and ending
MM/DD/YY
Residency Status. Fill in only one oval.
Address of Fiduciary (Street Number and Name, etc.)
R Pennsylvania Resident
N Nonresident
If “N”, Name of State
City or Post Office
State
ZIP Code
Final Return
MM/DD/YY
__
__
__
/
/
F Enter Ending Date:
Country Code
Dollars
Cents
Submit all required Pennsylvania supporting schedules.
DOLLARS
CENTS
If Line 3, 4 or 5 is a LOSS, fill in the oval next to the amount.
1.
1. INTEREST INCOME and GAMBLING and LOTTERY WINNINGS. . . . . . . . . . . . . . . . . . . .
2.
2. DIVIDEND AND CAPITAL GAINS DISTRIBUTIONS INCOME. . . . . . . . . . . . . . . . . . . . . . .
LOSS
3. NET INCOME or LOSS from the Operation of a Business, Profession or Farm.
3.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LOSS
4. NET GAIN or LOSS from the Sale, Exchange or Disposition of Property.
4.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LOSS
5. NET INCOME or LOSS from Rents, Royalties, Patents or Copyrights.
5.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
6. ESTATE or TRUST INCOME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. TOTAL INCOME. Add only the positive income amounts from Lines 1, 2, 3, 4, 5 and 6.
7.
Do not add losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
8. DEDUCTIONS from PA SCHEDULE DD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.
9. NET PA-TAXABLE INCOME. Subtract Line 8 from Line 7. . . . . . . . . . . . . . . . . . . . . . . . . . .
10.
10. PA TAX LIABILITY. Multiply Line 9 by the tax rate 3.07 percent (0.0307). . . . . . . . . . . . . . . .
11.
11. TAX WITHHELD FOR NONRESIDENT BENEFICIARIES. See the instructions. . . . . . . . . .
12.
12. TOTAL PA TAX LIABILITY. Add Lines 10 and 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.
13. 2020 ESTIMATED PAYMENTS and CREDITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14.
14. NONRESIDENT TAX WITHHELD from PA SCHEDULE(S) NRK-1. . . . . . . . . . . . . . . . . . . .
15. TOTAL CREDIT for TAXES PAID by PA RESIDENT ESTATES or TRUSTS
15.
to OTHER STATES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16.
16. TOTAL OTHER CREDITS from PA SCHEDULE OC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
17. PA INCOME TAX WITHHELD.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
18.
18. TOTAL PAYMENTS and CREDITS. Add Lines 13, 14, 15, 16 and 17. . . . . . . . . . . . . . . . . .
19
19. USE TAX. See the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
EC
FC
2004110058
Reset Entire Form
TOP OF PAGE
NEXT PAGE
PRINT
PA-41
2004210056
PA Fiduciary Income Tax Return
PA-41 05-21
(FI)
2020
PA Department of Revenue
START
Name as shown on PA-41
Federal EIN or Decedent’s Social Security Number
HERE
20. TAX DUE. If the total of Line 12 and Line 19 is more than Line 18, enter the
20
difference here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
21. PENALTIES AND INTEREST. See the instructions for additional
21.
information. If including REV-1630F, fill in oval. . . . . . . . . . . . . . . . . .
22. TOTAL PAYMENT – Add Lines 20 and 21. Make check or money order payable to
22.
PA DEPT. OF REVENUE. See the instructions on HOW TO PAY.. . . . . . . . . . . . . . . . . . . . .
23. OVERPAYMENT. If Line 18 is more than the total of Lines 12, 19 and 21, enter the
23.
difference here. The total of Lines 24 and 25 must equal Line 23 . . . . . . . . . . . . . . . . . . .
24. REFUND – Amount of Line 23 you want as a check mailed to the estate or trust.
24.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . REFUND
25. CREDIT – Amount of Line 23 you want as a credit to the 2021 estimated tax account
25.
of the estate or trust. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signature(s). Under penalties of perjury, I have examined this return, including all accompanying schedules and statements, and to the best of my belief, it is true, correct and complete.
Signature of Fiduciary
Date
Please remember to sign your PA-41 after printing.
MM/DD/YY
Name of preparer or his or her company name, based on all information on this return of which the preparer has any knowledge.
Firm FEIN
Preparer’s PTIN
Preparer’s Name and Telephone Number
PA SCHEDULE OI -
Other Information
2020
PA-41 OI 05-21 (FI)
YES
NO
1. Is this a revocable trust?
2. Is this an irrevocable trust?
3. Does the estate/trust receive income from or pay income to a foreign entity? If “Yes,” include a statement
with this return. See the PA-41 Schedule OI instructions for what to include with that statement.
4. Has the federal government made an additional assessment on the income of this estate/trust in the last four
years? If “Yes,” include a statement with this return explaining such adjustments. See the PA-41 Schedule OI
instructions.
5. Did this estate/trust receive income from a partnership, S corporation, LLC, or another estate/trust? If “Yes,” list
below all such partnerships, S corporations, LLCs, estates/trusts, showing the FEIN, name and address of each.
If additional space is necessary, include a supplemental statement (in the same format) with this return.
FEIN
Name
Address
a.
b.
c.
d.
e.
f.
6.
If this return is for a trust, state the name and address of the grantor below.
Name of Grantor:
Address of Grantor:
2004210056
2004210056
Reset Entire Form
PREVIOUS PAGE
NEXT PAGE
PRINT
2020
Instructions for Form PA-41
Pennsylvania Fiduciary Income Tax Return
PA-41 IN 05-21
WHAT’S NEW
PRIVACY NOTIFICATION
By law (42 U.S.C. §405(c)(2)(C)(i); 61 Pa. Code §117.16),
For tax years beginning after Dec. 31, 2019, separate
the department has the authority to use the Social
returns are no longer required to be filed by the estate and
Security number (SSN) to administer the Pennsylvania
the related trust(s) when the fiduciaries have filed an election
personal income tax and other Commonwealth of
under IRC Section 645 to treat the income of the trust(s) as
Pennsylvania tax laws.
part of the estate. Act 13 of 2019 permits the fiduciary to file
The department uses the SSN to identify individual taxpayers
a joint return for the estate and trust(s) for the tax years
and verify their incomes. The department also uses the SSN
when for federal income tax purposes, the trust income is
to administer a number of tax-offset and child-support
reported as part of the estate income in accordance with IRC
programs that federal and Pennsylvania laws require.
Section 645. See Income Tax Returns of Estates and Trusts
Electing to File One Return Based Upon an Election Filed
The commonwealth may also use the SSN in exchange-of-
tax information agreements with governmental authorities.
Under IRC Section 645 on Page 13 for additional
Except for official purposes, Pennsylvania law prohibits the
information.
commonwealth from disclosing information that individuals
The foreign address instructions have been revised. Please
provide on income tax returns, including the SSN(s).
see the instructions beginning on Page 19 for additional
WHO MUST FILE
information on how to complete the address fields on the
PA-41, Fiduciary Income Tax Return, for an estate or trust
An estate or trust must file the PA-41, Fiduciary Income Tax
with a foreign address.
Return, if any of the following apply:
• The fiduciary of an irrevocable electing small business
GENERAL INFORMATION
trust received or realized more than $33 of
Pennsylvania-taxable income or records a loss in any
PURPOSE OF FORM
class of income;
The fiduciary of a resident estate or trust uses the PA-41,
• An estate or trust earned, received or realized more
Fiduciary Income Tax Return, to report:
than $33 of Pennsylvania-taxable income or records a
• The income, deductions, gains, losses, etc., of the
loss in any class of income;
estate or trust;
• The estate is a taxable bankruptcy estate of a Chapter
• The income that is either accumulated or held for future
7 or 11 bankruptcy debtor created under Section 1398
distribution or distributed currently to the beneficiaries;
of the Internal Revenue Code of 1986;
and
• The fiduciary of a resident estate or taxable trust
• Any income tax liability of the estate or trust.
received taxable income/loss during its taxable year;
• The fiduciary of a nonresident estate or trust received
The fiduciary of a nonresident estate or trust uses the PA-
taxable income and the estate or trust has a
41 Fiduciary Income Tax Return to report:
Pennsylvania resident beneficiary;
• Pennsylvania-source income when there are no
• The fiduciary of a grantor trust including a Grantor
resident beneficiaries;
Retained Annuity Trust (GRAT) or Grantor Retained
• Worldwide income when the estate or trust has
Unitrust (GRUT) received taxable income during its
Pennsylvania-source income and resident beneficiaries;
taxable year regardless of whether it is required to file a
federal income tax return or not, unless the grantor trust
or
is a settlor-revocable trust;
• Any income tax liability of the estate or trust.
• The fiduciary of a charitable trust including a Charitable
TAX CREDITS
Remainder Annuity Trust (CRAT) and Charitable
Estates and trusts cannot pass through any tax credits to its
Remainder Unitrust (CRUT) received taxable income
beneficiaries.
during its taxable year, regardless of whether it is
www.revenue.pa.gov
PA-41
1
required to file a federal income tax return or not, when
NOTE: For purposes of the last item above, a
any private individual benefits from the earnings of the
Pennsylvania personal income tax taxpayer means
trust;
any individual, estate, trust, partnership, PA S corporation
or entity formed as a limited liability company that is
• The fiduciary of a nonresident estate or taxable trust
classified as a partnership or PA S corporation for federal
received Pennsylvania-source income/loss during its
income tax purposes.
taxable year;
• The fiduciary of a nonresident taxable trust including
SPECIAL RULES
grantor trusts, GRATs, GRUTs, CRATs and CRUTs
received Pennsylvania-source income/loss;
Before preparation of the PA-41, Fiduciary Income Tax
Return, determine all of the following under the terms of the
• The fiduciary of a revocable trust that becomes an
governing instrument and the laws applicable to the
irrevocable trust (settlor of a revocable trust dies or the
administration of estates or trusts:
terms of trust are altered to make the trust irrevocable)
• Whether an item of receipt or expense is allocable to
received taxable income; or
corpus or income;
• The fiduciary of a qualified sub-chapter S trust (QSST)
• What part, if any, of the undistributed net income of a
received income from an S corporation that must flow
through to resident or nonresident income beneficiaries.
trust (for administrative purposes) is required to be
added to corpus;
WHO DOES NOT FILE A PA-41 FIDUCIARY
• Whether property distributed in kind is distributed as a
INCOME TAX RETURN
gift or bequest of specific property;
• Whether an amount is properly paid out of corpus as a
An estate or trust does not file the PA-41, Fiduciary Income
gift or bequest of a specific amount of money;
Tax Return, if it is one of the following:
• Whether payment of a distribution is directed without
• A charitable trust exclusively for religious, charitable,
reference to the existence or absence of income; and
scientific, literary or educational purposes;
• Whether the estate or trust must distribute an amount,
• A revocable trust-any revocable trust (grantor or settlor-
and whether it pays such amount out of income or
revocable);
corpus, or it may pay such amount out of either income
• A nonresident estate or trust with no Pennsylvania-
or corpus.
source income/loss AND no Pennsylvania resident
When the governing instrument specifically provides the
beneficiaries;
source from which amounts are to be permanently set aside
• A funeral trust;
or used, the provisions of the governing instrument control
• A resulting or constructive trust created by operation
the distribution and calculation of income.
of law;
The governing instrument determines when amounts,
• A trust created exclusively for the benefit of creditors
including particular items of income received by the estate
except a taxable bankruptcy estate of a Chapter 7 or 11
or trust, are set aside or when those amounts are used for
bankruptcy debtor created under Section 1398 of the
specific purposes. In the absence of specific provisions in
Internal Revenue Code of 1986;
the governing instrument, the amount shall be deemed to
consist of the same proportion of each class of the items of
• A principal and agent relationship;
income of the estate or trust as the total of each class bears
• A business trust or real estate investment trust;
to the total of all classes.
• A trust created exclusively for the benefit of
In determining whether income derived from a partnership,
employees, their families, or appointees under an
PA S corporation, estate or trust is required to be distributed
employee-benefit plan;
currently, or is distributed or credited to a beneficiary, the
• A pension trust or profit-sharing trust;
excess of the Pennsylvania-taxable income derived through
• A trust that is a common trust fund for federal income
such partnership, PA S corporation, estate or trust over the
tax purposes; or
amount of distributions or withdrawals therefrom shall be
considered to be income that is required to be retained,
• A trust created by an entity or enterprise other than a
accumulated or set aside.
Pennsylvania personal income tax taxpayer:
Amounts disbursed to pay taxes measured by the income
◦ For which no part of the income or corpus may
for another taxable period may not be treated as set aside
possibly
benefit
any
beneficiary
who
is
a
from current income.
Pennsylvania personal income tax taxpayer; and
◦ For which no part of the property consists of property
Generally, amounts disbursed to pay nondeductible trustee
transferred to it (or another trust) by any Pennsylvania
commissions, legal and accounting expenses and other
personal income tax taxpayer.
current expenses that do not reduce the amount of taxable
2
PA-41
www.revenue.pa.gov
or nontaxable income or gain of the trust for the taxable year
organization for which a donor may receive a charitable
shall be treated as nontaxable income or gain which is
contribution deduction for federal income tax purposes.
required to be accumulated, retained or set aside.
IMPORTANT: CRATs, charitable remainder trusts,
This is true as long as total distributions for the year do not
CRUTs and pooled income fund trusts of public
equal or exceed the excess of total taxable and nontaxable
charities are ordinary trusts that are not exempt from PA-41,
income received by the estate or trust for the taxable year
Fiduciary Income Tax Return, filing requirements or taxation.
over total taxable and nontaxable income received by the
These types of charitable trusts must file a Pennsylvania
estate or trust for the taxable year, which is required to be
trust tax return, pay tax on any undistributed income, and
accumulated, retained or set aside for future distribution.
report the income to the beneficiary on the same basis as
any other ordinary trust.
However, if total distributions for the year do equal or
exceed the excess of total taxable and nontaxable income
CORPUS
received by the estate or trust for the taxable year over
The corpus is principal or property of an estate or trust as
total taxable and nontaxable income received by the estate
opposed to the income it earns, receives or realizes from
or trust for the taxable year, which is required to be
its corpus.
accumulated, retained or set aside for future distribution,
ESTATE
the amounts shall be treated as distributions by the estate
For Pennsylvania personal income tax purposes, an estate
or trust and beneficiaries.
is the estate of a deceased individual.
If a trust consists in part of intangible investment property,
An estate also includes a taxable bankruptcy estate of a
such as stock or securities, or tangible investment property,
Chapter 7 or 11 bankruptcy debtor created under Section
such as real estate located outside Pennsylvania transferred
1398 of the Internal Revenue Code of 1986. The
to it by a person who at the time of the transfer was a
Commonwealth is authorized to tax such estates under Title
nonresident, the income or gains realized from such
property shall be excludable from tax by the trust.
11, Section 346(a) of the U.S. Bankruptcy Code.
An estate does not include the estate of a minor or
DEFINITIONS
incompetent. The guardian of a minor or incompetent is
required to file income tax returns for such individuals on
CHARITABLE TRUST
Form PA-40.
A charitable trust is one operated exclusively for religious,
charitable, scientific, literary or educational purposes. A trust
FIDUCIARY
is a charitable trust only if all of the net earnings for the
A fiduciary is an individual, corporation or association
taxable year and remaining life of the trust are for distribution
holding assets in trust for another party, often with the legal
for such purposes. No part of the earnings of a charitable
authority and duty to make decisions regarding financial
trust may benefit any private individual.
matters on behalf of the other party.
Trusts for the general care, maintenance or improvement of
FUNERAL TRUST
public or church cemeteries are charitable trusts. However,
A funeral trust is a trust that arises from a contract with a
trusts for the care, maintenance, or improvement of the
person engaged in the business of providing funeral or burial
burial lots of the settlor, testator or his/her family are not
services or property for these services, with the trust assets
charitable trusts.
designated to pay the funeral expenses of the individual for
CHARITABLE REMAINDER ANNUITY TRUSTS
whom the trust is established. The trust assets cannot be
(CRATS) AND CHARITABLE REMAINDER
distributed until the death of that individual. Funeral trusts
UNITRUSTS (CRUTS)
are revocable trusts and are not required to file a PA-41,
Fiduciary Income Tax Return. However, income on the trust
Charitable Remainder Annuity Trusts (CRATs) and
assets is taxed to the taxpayer who contributed the assets
Charitable Remainder Unitrusts (CRUTs) are trusts
to the trust. See the PA Personal Income Tax Guide –
consisting of assets that are designated for a charitable
Estate, Trusts and Decedents section for more information.
purpose and are paid over to the trusts after the expiration
of a life estate or intermediate estate.
GOVERNING INSTRUMENT
Federally qualified CRATs and CRUTs are not charitable
The governing or trust instrument is a written document that
trusts if during the current taxable year:
defines and describes the nature of and provides
instructions for the administration and settlement of an
• Any part of the trust’s undistributed income may benefit
estate or trust.
any private individual in subsequent years; or
• Any part of the trust's current income is required under
The document can be a deed of trust, will, written trust
the governing instrument or any applicable state law to
agreement, an instrument creating or exercising a power of
be distributed currently or is actually distributed or
appointment or a dispositive, appointive or nominative
credited to a beneficiary that is not a charitable
instrument of a similar type.
www.revenue.pa.gov
PA-41
3
Page of 36