What does the fiduciary need to provide to the beneficiary?

The fiduciary must provide a Schedule K-1 (Form 1041) to each beneficiary. The fiduciary must also provide notice of Michigan adjustments to each beneficiary. The notice may be noted on a copy of the Schedule K-1 (Form 1041) or a separate letter to each beneficiary. If a letter is used, it must include the name and federal identification number of the estate or trust.

Each beneficiary must be advised of his or her share of the following:

• Michigan adjustments from resident estates or trusts.
• Michigan income from nonresident estates or trusts.
• Capital gains/losses available for adjustment under Section 271 of the Michigan Income Tax Act.