A fiduciary return is the annual tax return for estates and trusts, usually IRS Form 1041, reporting income, deductions, and distributions. Trustees or executors file on a calendar or fiscal year. Accurate returns require fiduciary accounting records, beneficiary K-1s, and attention to DNI rules. Late or incorrect filings may trigger penalties.

Executors and trustees compile records and file Form 1041, issuing K-1s to beneficiaries. Advisors ensure distributions match DNI strategy and that deadlines are met. Clean filings avoid penalties and close out tax years efficiently.