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Beneficiaries

Beneficiary allocation information

When you go to
View
, then
Beneficiary Information
 (or press
Ctrl + R
), you'll get an Allocation Summary. This shows allocation information you've entered for all beneficiaries on the return without viewing each beneficiary. If the return is allocating differently than the Allocation Summary, review the related critical and FYI diagnostics.
The following tables explain the messages you can get, in order of precedence.

Ordinary income

Message
Description
Allocation based on charitable trust ordering rules
If you prepare Form 5227 for a charitable remainder annuity trust or a charitable remainder unitrust, the allocation of ordinary income to beneficiaries is based on the ordering rules in the Form 5227 instructions. Enter information for charitable remainder trusts information in the Other Returns section on the
Federal
 tab.
Equal Allocation
You marked the
First tier beneficiaries: Allocation all items, except capital gains, equally
 checkbox on the
Allocate
 screen in the Allocations folder. This has precedence over all other entries for required distributions.
Ownership Share
You're preparing a return for a pooled income fund and there's data in
Pooled income funds: Allocate based on ownership share
. Data for the ownership share ratio is in the Other Returns section on the
Federal
 tab. The allocation is based on a beneficiary's share divided by the sum of all the beneficiary's share.
Special Allocation
Any beneficiary has data in
Special Allocations
 on the
Federal
 tab. A dot on this button shows there's data for the beneficiary. Data in
Special Allocations
 has precedence over the
Income Distributions
 data for the category of income.
Income Distributions Allocation
Any beneficiary has an amount or percent entered in the
Income distributions
 line in the Allocation section on the
Federal
 tab.
No Allocation
No allocations are entered for the beneficiaries on a non-final return.
Default Equal Allocation
No allocations are entered for a simple trust, grantor trust, agency relationship, or a final return.

Capital Gains

Message
Description
Allocation based on charitable trust ordering rules
If Form 5227 is being prepared for a charitable remainder annuity trust or a charitable remainder unitrust, the allocation of ordinary income to beneficiaries is based on the ordering rules in the Form 5227 instructions. Enter charitable remainder trusts information in the Other Returns section on the
Federal
 tab.
Equal Allocation
You marked the
First tier beneficiaries: Allocate capital gains equally
 checkbox on the Allocate screen in the Allocations folder. This has precedence over all other entries for required distributions.
Ownership Share
You're preparing a return for a pooled income fund and
Pooled income funds: Allocate based on ownership share
 has data. You enter ownership share ratio information in the Other Returns section on the
Federal
 tab. The allocation is based on a beneficiary's share divided by the sum of all the beneficiary's share.
Allocation by Amount
Any beneficiary has an amount entered for short-term or long-term capital gains in the Allocations section on the
Federal
 tab.
Allocation by Percent
Any beneficiary has a percent entered for short-term or long-term capital gains in the Allocations section on the Federal tab
No Allocation
No allocations are entered for the beneficiaries on a non-final return
Default Equal Allocation
No allocations are entered for a final return.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1041 Fiduciary
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