We have been preparing tax returns for trusts and estates for more than twenty years. Jean also has experience working in two bank trust departments before going into public accounting. We have prepared more than 2,000 of these returns over the years, so you can feel confident you have an expert in this field.
We work with your attorney and your personal representative (executor or trustee). This may be an individual, such as a relative or close friend, or a bank trust department designated by you to handle your trust or estate.
There may be several types of tax returns required in this area. For example, a Trust or Estate is required to file Form 1041 to report income and deductions for each year where it has gross income of at least $600. Depending upon the circumstances, a Schedule K-1 form may be issued to beneficiaries which reports that person's share of any income or losses from the Trust or Estate. The beneficiary then must report these amounts on his or her own income tax return for the year.
Some types of trusts are considered to be charitable. They may be required to file for tax-exempt status with the IRS. They may also file an annual Form 990 or Form 990-PF to report income and expenses.
Other possible tax returns are the federal estate tax return (for very large estates) and state inheritance (or estate) tax returns. If the decedent owned a business, there could even be payroll and sales tax returns or corporate, partnership, or LLC tax returns.
If you are the Trustee or Executor, please let us know if we may assist you in recording the financial transactions. Some courts will require you to submit an annual accounting statement to show how you have managed the funds of the trust or estate. We would be pleased to work with you and your attorney in the tax and accounting areas of trust or estate management.
If you find the day to day management is too complicated for your resources, you may wish to speak with a bank trust department. They may be able to act as your Agent, taking over most of the details for you. We have worked extensively with the local banks in tax preparation and advice through the years.
Feel free to contact us with any questions you may have in regard to working with us in these areas. We are here to make life (and death) easier for all concerned.
