DECEDENT, TRUST & PROBATE ESTATE TAX REPORTING
When a loved one passes, it is necessary to wrap up their tax affairs. Our tax services cover the preparation and filing of a decedent's final tax return, as well as the preparation and filing of tax returns for trust and probate estates.
Decedent's Final Return
Whether your loved one was obligated to file taxes prior to passing, it is always a good idea to file a final return with the Internal Revenue Service and California Franchise Tax Board. This lets the IRS and FTB know that your loved one has passed and that their Social Security Number will no longer be reporting.
Trust and Probate Estate Tax Returns
As well, we prepare the necessary tax returns for trust and probate estates. Like any other entity, trusts and probate estates may be required to file a tax return until the trust is wound up, and until the probate estate is wrapped up after the final distribution of the probate estate assets. Where either a trust estate or probate estate generates the threshold level of income, the reporting of income by filing the appropriate tax return is required by law.
Trust and probate tax returns entail a unique area of tax practice called "fiduciary" accounting and taxation. Fiduciary accounting has a special set of rules, the navigation of which can mean heavy taxation or considerable tax savings for beneficiaries depending on the management of the estate.
We offer a complimentary consultation to address your questions about tax compliance.