How to Create a Payment Schedule for a Trust
Does the Estate Need a Temporary Executor?
Seek Advice for Complex Schedules on Estate Form 706

10 Common Pitfalls for Estate and Trust Administrators to Avoid

Don't take a lump sum distribution from a pension plan, IRA, or deferred compensation plan.

When you’re trying to figure out exactly how much the estate owns, you may be tempted to liquidate everything into cash. Don’t give into that temptation when it comes to any sort of pension plan, IRA, or deferred compensation plan. As soon as you cash out, the estate owes income taxes on every penny that the decedent hadn’t already paid tax on.

  • Add a Comment
  • Print
  • Share

Recommends

Promoted Stories From Around The Web

COMMENTS »
blog comments powered by Disqus
How to Complete Schedule O for Estate Form 706
What Are Grantor Trusts and Non-Grantor Trusts?
How to Submit a Trust’s Final Income Tax Returns
What are Marital Trusts?
What Are Grantor-Retained Trusts All About?