Use the information to finish the form 1041 for trust#2, thank you!

Sam is 66 and on his second marriage. He is extremely wealthy and has amassed a varied portfolio of assets. They include businesses, investment vehicles - some stocks, some bonds).

TRUST 2: He provided a separate trust for Lizanne's two children. This trust provides for tuition (undergraduate and graduate of their choice) and a small amount for living expenses after the children reach the age of 30. The children will receive $50,000 at that age. Trust provisions are as such: The child must refrain from abuse of alcohol and refrain from drug use of any kind. They also must maintain a GPA above 3.0. This trust is listed as irrevocable.

TRUST \#2 ASSETS HELD IN TRUST LONG TERM MARKETABLE EQUITY SECURITIES \begin{tabular}{|c|c|c|} \hline BASIS & CURRENT MARKET VALUE December 31, & Taxable Year Income \\ \hline 5,000,000 & 7,500,000 & 375,000 \\ \hline \end{tabular} Trust Expenses and Distributions: \begin{tabular}{lr} Trustee Costs & $75,000 \\ Graduate Tuititon to child 1 & 100,000 \\ Graduate Tuition to child 2 & 100,000 \\ Distribution to child 1 & 50,000 \\ distribution to child 2 & 50,000 \\ \cline { 2 - 2 } & $375,000 \end{tabular} Form 1041 (2021) Page 2 Schedule A Charitable Deduction. Don't complete for a simple trust or a pooled income fund. 1 Amounts paid or permanently set aside for charitable purposes from gross income. See instructions 2 Tax-exempt income allocable to charitable contributions. See instructions 3 Subtract line 2 from line 1 4 Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes . 5 Add lines 3 and 4 . 6 Section 1202 exclusion allocable to capital gains paid or permanently set aside for charitable purposes. See instructions . 1 Adjusted total income. See instructions . 2 Adjusted tax-exempt interest 3 Total net gain from Schedule D (Form 1041), line 19, column (1). See instructions . 4 Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion) 5 Capital gains for the tax year included on Schedule A, line 1. See instructions 6 Enter any gain from page 1 , line 4 , as a negative number. If page 1 , line 4 , is a loss, enter the loss as a positive number. 7 Distributable net income. Combine lines 1 through 6 . If zero or less, enter 0 - . 8 If a complex trust, enter accounting income for the tax year as determined under the governing instrument and applicable local law 9 Income required to be distributed currently . 10 Other amounts paid, credited, or otherwise required to be distributed . 11 Total distributions. Add lines 9 and 10 . If greater than line 8 , see instructions 12 Enter the amount of tax-exempt income included on line 11. 13 Tentative income distribution deduction. Subtract line 12 from line 11 b Tax on lump-sum distributions. Attach Form 4972 c Alternative minimum tax (from Schedule I (Form 1041), line 54) d Total. Add lines 1a through 1c. 2a Foreign tax credit. Attach Form 1116 . b General business credit. Attach Form 3800 . c Credit for prior year minimum tax. Attach Form 8801 d Bond credits. Attach Form 8912 e Total credits. Add lines 2a through 2d. 3 Subtract line 2e from line 1d. If zero or less, enter 0 4 Tax on the ESBT portion of the trust (from ESBT Tax Worksheet, line 17). See instructions 5 Net investment income tax from Form 8960, line 21. 6 Recapture taxes. Check if from: Form 4255 Form 8611 7 Household employment taxes. Attach Schedule H (Form 1040). 8 Other taxes and amounts due 99 Total tax. Add I \begin{tabular}{|c|c} \hline 1 & \\ \hline 2 & \\ \hline 3 & \\ \hline 4 & \\ \hline 5 & \\ \hline & \\ 6 & \\ \hline 7 & \\ \hline & \\ \hline 9 & \\ \hline 10 & \\ \hline 11 & \\ \hline 12 & \\ \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline \end{tabular} 102021 estimated tax payments and amount applied from 2020 return 11 Estimated tax payments allocated to beneficiaries (from Form 1041-T). 12 Subtract line 11 from line 10. 13 Tax paid with Form 7004. See instructions 14 Federal income tax withheld. If any is from Form(s) 1099 , check here 15 Current year net 965 tax liability from Form 965A, Part I, column ( f (see instructions) 16 Other payments: a Form 2439 17 Credit for qualified sick and family leave wages for leave taken before April 1, 2021 18 Credit for qualified sick and family leave wages for leave taken after March 31, 2021. 19 Total payments. Add lines 12 through 15 and 16c through 18 . Enter here and on page 1 , line 26 . \begin{tabular}{|l|l} \hline 1 & \\ \hline 2 & \\ \hline 3 & \\ \hline & \\ \hline 4 & \\ \hline 5 & \\ \hline & \\ 6 & \\ \hline 7 & \\ \hline \end{tabular} Form 1041 (2021) Page 3 Other Information 1 Did the estate or trust receive tax-exempt income? If "Yes," attach a computation of the allocation of expenses. Enter the amount of tax-exempt interest income and exempt-interest dividends 2 Did the estate or trust receive all or any part of the earnings (salary, wages, and other compensation) of any individual by reason of a contract assignment or similar arrangement? . 3 At any time during calendar year 2021, did the estate or trust have an interest in or a signature or other authority over a bank, securities, or other financial account in a foreign country? See the instructions for exceptions and filing requirements for FinCEN Form 114. If "Yes," enter the name of the foreign country 4 During the tax year, did the estate or trust receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the estate or trust may have to file Form 3520. See instructions 5 Did the estate or trust receive, or pay, any qualified residence interest on seller-provided financing? If "Yes," see the instructions for the required attachment 6 If this is an estate or a complex trust making the section 663(b) election, check here. See instructions 7 To make a section 643(e)(3) election, attach Schedule D (Form 1041), and check here. See instructions . 8 If the decedent's estate has been open for more than 2 years, attach an explanation for the delay in closing the estate, and check here 9 Are any present or future trust beneficiaries skip persons? See instructions 10 Was the trust a specified domestic entity required to file Form 8938 for the tax year (see the Instructions for Form 8938)? . 11a Did the estate or trust distribute S corporation stock for which it made a section 965(i) election? b If "Yes," did each beneficiary enter into an agreement to be liable for the net tax liability? See instructions . 12 Did the estate or trust make a section 965(i) election for S corporation stock held on the last day of the tax year? See instructions. 13 ESBTs only. Does the ESBT have a nonresident alien grantor? If "Yes," see instructions 14 ESBTs only. Did the S portion of the trust claim a qualified business income deduction? If "Yes," see instructions Form 1041 (2021) TRUST \#2 ASSETS HELD IN TRUST LONG TERM MARKETABLE EQUITY SECURITIES \begin{tabular}{|c|c|c|} \hline BASIS & CURRENT MARKET VALUE December 31, & Taxable Year Income \\ \hline 5,000,000 & 7,500,000 & 375,000 \\ \hline \end{tabular} Trust Expenses and Distributions: \begin{tabular}{lr} Trustee Costs & $75,000 \\ Graduate Tuititon to child 1 & 100,000 \\ Graduate Tuition to child 2 & 100,000 \\ Distribution to child 1 & 50,000 \\ distribution to child 2 & 50,000 \\ \cline { 2 - 2 } & $375,000 \end{tabular} Form 1041 (2021) Page 2 Schedule A Charitable Deduction. Don't complete for a simple trust or a pooled income fund. 1 Amounts paid or permanently set aside for charitable purposes from gross income. See instructions 2 Tax-exempt income allocable to charitable contributions. See instructions 3 Subtract line 2 from line 1 4 Capital gains for the tax year allocated to corpus and paid or permanently set aside for charitable purposes . 5 Add lines 3 and 4 . 6 Section 1202 exclusion allocable to capital gains paid or permanently set aside for charitable purposes. See instructions . 1 Adjusted total income. See instructions . 2 Adjusted tax-exempt interest 3 Total net gain from Schedule D (Form 1041), line 19, column (1). See instructions . 4 Enter amount from Schedule A, line 4 (minus any allocable section 1202 exclusion) 5 Capital gains for the tax year included on Schedule A, line 1. See instructions 6 Enter any gain from page 1 , line 4 , as a negative number. If page 1 , line 4 , is a loss, enter the loss as a positive number. 7 Distributable net income. Combine lines 1 through 6 . If zero or less, enter 0 - . 8 If a complex trust, enter accounting income for the tax year as determined under the governing instrument and applicable local law 9 Income required to be distributed currently . 10 Other amounts paid, credited, or otherwise required to be distributed . 11 Total distributions. Add lines 9 and 10 . If greater than line 8 , see instructions 12 Enter the amount of tax-exempt income included on line 11. 13 Tentative income distribution deduction. Subtract line 12 from line 11 b Tax on lump-sum distributions. Attach Form 4972 c Alternative minimum tax (from Schedule I (Form 1041), line 54) d Total. Add lines 1a through 1c. 2a Foreign tax credit. Attach Form 1116 . b General business credit. Attach Form 3800 . c Credit for prior year minimum tax. Attach Form 8801 d Bond credits. Attach Form 8912 e Total credits. Add lines 2a through 2d. 3 Subtract line 2e from line 1d. If zero or less, enter 0 4 Tax on the ESBT portion of the trust (from ESBT Tax Worksheet, line 17). See instructions 5 Net investment income tax from Form 8960, line 21. 6 Recapture taxes. Check if from: Form 4255 Form 8611 7 Household employment taxes. Attach Schedule H (Form 1040). 8 Other taxes and amounts due 99 Total tax. Add I \begin{tabular}{|c|c} \hline 1 & \\ \hline 2 & \\ \hline 3 & \\ \hline 4 & \\ \hline 5 & \\ \hline & \\ 6 & \\ \hline 7 & \\ \hline & \\ \hline 9 & \\ \hline 10 & \\ \hline 11 & \\ \hline 12 & \\ \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline \end{tabular} 102021 estimated tax payments and amount applied from 2020 return 11 Estimated tax payments allocated to beneficiaries (from Form 1041-T). 12 Subtract line 11 from line 10. 13 Tax paid with Form 7004. See instructions 14 Federal income tax withheld. If any is from Form(s) 1099 , check here 15 Current year net 965 tax liability from Form 965A, Part I, column ( f (see instructions) 16 Other payments: a Form 2439 17 Credit for qualified sick and family leave wages for leave taken before April 1, 2021 18 Credit for qualified sick and family leave wages for leave taken after March 31, 2021. 19 Total payments. Add lines 12 through 15 and 16c through 18 . Enter here and on page 1 , line 26 . \begin{tabular}{|l|l} \hline 1 & \\ \hline 2 & \\ \hline 3 & \\ \hline & \\ \hline 4 & \\ \hline 5 & \\ \hline & \\ 6 & \\ \hline 7 & \\ \hline \end{tabular} Form 1041 (2021) Page 3 Other Information 1 Did the estate or trust receive tax-exempt income? If "Yes," attach a computation of the allocation of expenses. Enter the amount of tax-exempt interest income and exempt-interest dividends 2 Did the estate or trust receive all or any part of the earnings (salary, wages, and other compensation) of any individual by reason of a contract assignment or similar arrangement? . 3 At any time during calendar year 2021, did the estate or trust have an interest in or a signature or other authority over a bank, securities, or other financial account in a foreign country? See the instructions for exceptions and filing requirements for FinCEN Form 114. If "Yes," enter the name of the foreign country 4 During the tax year, did the estate or trust receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If "Yes," the estate or trust may have to file Form 3520. See instructions 5 Did the estate or trust receive, or pay, any qualified residence interest on seller-provided financing? If "Yes," see the instructions for the required attachment 6 If this is an estate or a complex trust making the section 663(b) election, check here. See instructions 7 To make a section 643(e)(3) election, attach Schedule D (Form 1041), and check here. See instructions . 8 If the decedent's estate has been open for more than 2 years, attach an explanation for the delay in closing the estate, and check here 9 Are any present or future trust beneficiaries skip persons? See instructions 10 Was the trust a specified domestic entity required to file Form 8938 for the tax year (see the Instructions for Form 8938)? . 11a Did the estate or trust distribute S corporation stock for which it made a section 965(i) election? b If "Yes," did each beneficiary enter into an agreement to be liable for the net tax liability? See instructions . 12 Did the estate or trust make a section 965(i) election for S corporation stock held on the last day of the tax year? See instructions. 13 ESBTs only. Does the ESBT have a nonresident alien grantor? If "Yes," see instructions 14 ESBTs only. Did the S portion of the trust claim a qualified business income deduction? If "Yes," see instructions Form 1041 (2021)