Estate Planning For Dummies Cheat Sheet
How to Locate a Decedent's Hidden Assets
Does the Estate Need a Special Administrator?

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 Prepare Supplements to Schedule K-1 for Estates and Trusts
What's a Probate Estate All About?
How to Allocate Income on Schedule K-1 for Estates and Trusts
Estate Tax Closing Letters and Real Estate Releases of Lien
How to Make Your Will a Reflection of Your Wishes