Kathryn A. Murphy

As the fiduciary of an estate or trust, you have many duties, beginning immediately upon the decedent’s (deceased person’s) passing. You’re also guaranteed to become intimately familiar with a host of tax forms you may not have known existed.Tax forms to know as the fiduciary of an estate or trustWhen you’re administering an estate or trust, you may have to prepare a seemingly endless array of tax returns.

When you’re asked to administer a trust or estate for a relative or friend (especially if that person didn’t have a will), this important responsibility can feel overwhelming during an already difficult time. Here are ten pitfalls that often trip up unwary administrators — and that you should avoid:Don't fail to terminate an existing real estate purchase and sale agreement.

If your decedent left a surviving spouse, you may have a whopper of a deduction available to you, which you report on Schedule M: Bequests, etc. to surviving spouse. All property that passes to the surviving spouse as a result of the decedent’s death qualifies for the unlimited marital deduction, provided that the surviving spouse is a U.

Completing the 706 may seem bad enough to you, but you probably have a pile of supporting documentation that you need to send with it. If you do, attach whichever of the following documents are applicable in your decedent’s estate to the return when you file it. Consider preparing an index, or list, of exhibits.

Lines 9–17 of the Estate Form 706 are to remind you of other property that may be includible in the decedent’s estate. If you aren’t including it, the IRS wants an explanation. Line 9: If any insurance on the decedent’s life isn’t included on the return, answer “yes” on line 9a, complete Schedule D, and attach as an exhibit Form 712, Life Insurance Statement, together with an explanation of why the policy isn’t includible in the estate.

Handling an estate can be confusing and overwhelming. After you’ve been appointed as executor, there are some important first steps every executor should take to make things as simple as possible. Adding the executor to insurance policy endorsements: Homeowner’s and other real property insurance — Add your name as executor to any policies of insurance on the decedent’s real estate (and if the decedent’s home is unoccupied, let the insurance company know in case a special rider is needed.

The American Taxpayer Relief Act of 2012 (the Act), fondly known as the "Fiscal Cliff Act," contains a number of provisions affecting estates and trusts. It makes permanent a number of expiring tax provisions and revives others that had already vanished. Here's a breakdown of what you need to be concerned with as the fiduciary of an estate or trust.

If you’re an executor, personal representative, or administrator of an estate, your job begins at the death of the person whose estate you’re administering. The following list contains tasks you need to take care of in the first days and weeks after the decedent’s death. Determine the decedent’s wishes regarding arrangements such as funeral and burial.