Tax Return Preparation

The preparation of fiduciary tax returns is a core component of estate and trust administration. We assist fiduciaries with the timely and accurate filing of:

Estate and Trust Income Tax Returns (Form 1041): We ensure proper filing of income tax returns for estates and trusts, considering income earned by the estate or trust, timing of distributions and deductions available to reduce taxable income.
Decedent’s Final Return (Form 1040): We can assist in preparing the final income tax return for the decedent, ensuring that all income and deductions are properly accounted for up until the date of death.

Gift Tax Returns (Form 709): When clients make gifts beyond the gift tax annual exclusion that require the filing of a gift tax return, we are able to prepare the return to address estate, gift and generation-skipping transfer tax issues with precision to minimize future inquiries from the IRS.
Estate Tax Returns (Form 706): We have prepared many state and federal estate tax returns, fully disclosing estate information in a methodical, organized manner that minimizes questions from the IRS and brings a family closure as soon as possible.

Tax Considerations for Distributions and Transfers

When preparing tax returns for trusts and estates, we work closely with fiduciaries to manage the tax implications of asset distributions. We help ensure that distributions to beneficiaries are processed in the most tax-efficient manner, and that the correct tax treatment is applied. Our team focuses on:

Distributions to Beneficiaries: We guide fiduciaries on the tax consequences of income distributions from the estate or trust to beneficiaries, ensuring that all income is properly reported and taxed at the beneficiary’s level.
Grantor Trust Status: We guide settlors and fiduciaries on the planning opportunities available through the election or termination of grantor trust status in certain types of trusts.

Asset Transfers: When assets are transferred from an estate or trust to beneficiaries or charitable organizations, we advise on the correct treatment of these transfers to minimize any potential tax liabilities.
Deduction Planning: We guide fiduciaries on timing of expenses that can incur tax deductions and whether to consider the deduction on the estate tax return or an income tax return to provide the family the greatest tax leverage.

Comprehensive Support Across Legal Matters

Tax return preparation for trusts and estates often involves close coordination with our broader legal team. Our Trusts and Estates attorneys work with clients to ensure that all tax filings align with the terms of the will, trust agreements or probate proceedings. Additionally, our integrated approach also includes providing support for:

Asset Allocations in Family Law Matters: When tax issues arise in family law cases, particularly those involving trust and estate assets, our tax experts collaborate with family law attorneys to address tax-advantaged asset allocations or property divisions and other concerns.

Charitable Contributions and Deductions: We ensure that charitable contributions made by individuals, or by the trust or estate, are properly reported for income and estate tax purposes, maximizing the available deductions.

Let us help you gain peace of mind, alleviating tax burdens and maximizing returns for your estate.

By focusing on thorough and accurate tax return preparation, Schneider Bell helps to simplify the administration of estates and trusts while ensuring full compliance with all federal and state tax regulations. Whether preparing a decedent’s final return or managing the tax filings for an estate or trust, we provide expert guidance and support to ensure the most tax-efficient outcomes for all involved.

Contact our team today.

Contact Us Today

Tax Return Preparation

Navigating the intricacies of tax return preparation for trusts and estates is essential for ensuring compliance and minimizing state and federal tax burdens.

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