Estate Planning

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How to Transfer Real Estate into a Trust

A grantor may choose to transfer real property into a trust. For trustees, funding a trust with real estate involves transferring the property’s title, drafting a new deed and getting it signed, and assuming [more…]

How to Fund a Trust after a Grantor’s Death

Often, trusts are created during the grantor’s lifetime, but they aren’t funded until after the grantor dies. If you’re a trustee of such a trust, there are certain steps to take to transfer assets into [more…]

How to Diversify Stocks for a Trust

Investing in the stock market is a popular way to produce income from trust principal for the trust’s income beneficiaries. Stocks, sometimes referred to as equities, are ownership interests in corporations [more…]

How to Distribute from a Trust with Age Provisions

Many trusts contain age provisions that distribute trust income and/or principal to the trust’s beneficiaries only when they reach certain ages. The administrator of an estate must honor the specific provisions [more…]

How to Handle Beneficiary Requests for Additional Trust Distributions

As the administrator of a trust, you may receive requests from beneficiaries for additional distributions. As trustee, you can accept or decline these requests at your discretion. When making these decisions [more…]

How to Make Discretionary Distributions of Trust Funds

Trust instruments usually give some guidance regarding what sorts of discretionary distributions a trustee can make to beneficiaries. Discretionary powers may be narrowly prescribed in the trust instrument [more…]

How to Appraise a Decedent’s Real Estate Holdings

As the executor of an estate, you must value the estate’s real estate holdings at the time of the decedent’s death. You may be able to use the real estate assessment as the value at the date of death. [more…]

Personal and Household Property in Trusts

A grantor may own a revocable or irrevocable trust. The difference between the two types of trusts determines whether the grantor should transfer personal and household property into it. [more…]

How to Complete Schedule C for Estate Form 706

An estate administrator should report assets like mortgages, cash, and promissory notes on Schedule C: Mortgages, Notes, and Cash when filing tax Form 706. [more…]

How to Complete Schedule B for Estate Form 706

An estate’s administrator must complete Schedule B: Stocks and Bonds when filing Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return [more…]

How to Complete Schedule A for Estate Form 706

An estate’s administrator must complete Schedule A: Real Estate when filing Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return [more…]

How to Prepare a Trust’s Final Accounting

Before terminating a trust, you as trustee will need to prepare a final account and obtain assent from all remaindermen. These are your last steps, usually completed after distributing the final income [more…]

How to Produce Annual Trust Accounts

Trust administration is similar to organizing your own finances. However, a trustee must create a trust account for every year of the trust’s existence. This account traces all the activity in the trust [more…]

How to Determine a Trust's Schedule of Distributions

As trustee of an estate, you must determine the schedule of beneficiary distributions and be sure that distribution dates are calendared somewhere. The trust instrument may call [more…]

Consider Beneficiary Needs and the Trust’s Purpose

Beneficiaries’ needs change over time, and trust investments need to change in relation to them. As the trustee, you have to determine what the trust must do in order to meet those needs. You must keep [more…]

How to Prepare Supplements to Schedule K-1 for Estates and Trusts

While Schedule K-1for estates and trusts has space for much information, the fiduciary may want to give the beneficiaries more via supplements. The more information the better, including medical expenses [more…]

Recapture and Household Employee Taxes for a Decedent, Estate, or Trust

When you file taxes for a decedent, estate, or trust, you may have to pay recapture taxes or household employee taxes. Recapture and household employee taxes are included on Schedule G of Form 1041. For [more…]

How to Calculate the Estate Tax Deduction

The estate tax deduction deals with items of Income in Respect of Decedent (IRD). Income in Respect of Decedent items can be subject to both the estate tax and an income tax. The estate tax deduction compensates [more…]

How to Calculate Estate or Trust Income Distribution Deductions (Schedule B)

The Income Distribution Deduction (Schedule B) is unique to trusts and estates. When trusts and estates give income payments to beneficiaries, those payments carry income tax consequences for the trust [more…]

How to Complete Schedule F for Estate Form 706

Use Schedule F: Other Miscellaneous Property Not Reportable Under Any Other Schedule, when filing federal estate tax returns (Form 706), to report property that doesn’t belong on any other schedule. Be [more…]

How to Complete Schedule E for Estate Form 706

Use Schedule E: Jointly Owned Property,when filing federal estate tax returns (Form 706), if the decedent held property of any kind jointly at his or her death. Report property held jointly with the decedent’s [more…]

How to Complete Schedule D for Estate Form 706

An estate administrator uses Schedule D: Insurance on the Decedent’s Life, when filing a federal estate tax return (Form 706), to report any and all policies on the life of the decedent. Policies that [more…]

How to Calculate Trust Accounting Income

As a trustee, you may need to use the Trust Accounting Income (TAI) formula to calculate the amount of income from the trust that you can distribute to beneficiaries. In some cases, you will need to use [more…]

How to Create a Payment Schedule for a Trust

As a trustee, you should establish a payment schedule for the trust to ensure that the trust has enough money when you make distributions to beneficiaries and when you pay taxes and service fees. To create [more…]

Schedule K-1 for Estates and Trusts: General Information

An estate or trust’s income retains its character, and so beneficiaries must be informed of this character. The Schedule K-1 (Form 1041) gives the beneficiary the specific allocation between all items [more…]


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