Trust and estate taxation is a complex area that needs to be handled by experts. ATC ensure that our clients do not pay unnecessary taxes and/or fall into various financial and traps. We have required experience in preparing Trust and Estate Tax Returns and assisting our clients with their accounting needs.

 

Returns and reports we typically prepare are:

Trust Tax Return – Form 1041

Estate Tax Return – Form 1041

Estate Tax Return – Form 706

Gift Tax Return – Form 709

Fiduciary Accounting

Fiduciary Accounting (aka Trust Accounting)

Fiduciary accounting is required by most trust agreements. Preparing the required accounting will result in the Statute of Limitations stopping legal challenges after the time has passed under state law – after the accounting has been presented to beneficiaries.  On the Contrary, missed preparing to account required under a trust agreement can leave the fiduciary (trustee, personal representative, administrator) open to legal challenges well into the future.

Most of the accountant doesn’t know that fiduciary accounting is not accountings under Generally Accepted Accounting Principles (GAAP).  They are prepared following state probate laws.Don’t presume your accountant knows how to prepare these correctly.  If they are not prepared in the proper format, the Probate Court may rule that the Fiduciary did not properly account to the beneficiaries.

We require copies of the trust document, all amendments, revisions, and restatements, and we review these documents as part of our tax preparation and advisory services.  We also ordinarily confer with your attorney(s) to make sure we are all in agreement as to what the documentation says.

Personal income tax returns – Decedent

We prefer that the decedent’s final tax returns are prepared by us when a corresponding trust or estate tax return must be prepared. Allocations of income and deductions usually must be made between the deceased taxpayers and trust/estate tax returns

Gift Tax Returns / Form 709

The taxpayer required to file gift tax returns, if they gift greater than the annual exclusion of $14,000.  Failing to file required gift tax returns can cause problems in the future – especially if an Estate Tax Return will need to be prepared.

 

Trust Tax Consulting / Estate Tax Consulting

We help you to minimize your total tax burden between estates and trusts. It is a very complicated matter.  We take your tax situation personally and will do our best to help you pay the lowest legal taxes – without running afoul of tax laws.

Sub Trust Funding

Oftentimes people overlook funding sub-trusts, which are spelled out in the trust agreements.  We can work with you to ensure the sub-trusts are properly funded and accounted for.