How to Prepare Supplements to Schedule K-1 for Estates and Trusts
How to Submit a Trust’s Final Income Tax Returns
How to Determine If an Estate Must File 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.

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