Estates and Trusts

At Pacific Tax & Financial Group, we offer expert help with the preparation of 706 Estate tax returns and annual 1041 trust tax returns. We can handle all of your estate and trust tax filing needs in a timely matter. Not all estates must file a federal estate tax return. IRS Form 706 Estate tax return is required by the IRS for estates that meet certain criteria. In 2019 a 706 Estate tax return needs to be filed if your gross estate is valued at more than $11.4 million. The threshold will be indexed for inflation going forward. The tax return is due nine months after the decedent’s death.

Estate Portability Election

Starting in 2011 a surviving spouse can elect to pick up his/her deceased spouse’s unused estate tax exemption and add it to their $11.4 million estate tax free balance. The portability election effectively allows a couple to double up their tax-free estate allowance. We can help you with filing the portability election.

Fiduciary Income Tax Returns

Fiduciary income tax returns (Form 1041) is an income tax return that is required to be filed for trusts, estates and some other legal entities to properly report the earnings of the trusts and estates after the date of death of the taxpayer. If applicable the 1041 tax return also allocates the taxable earnings of the trust or estate to the beneficiary per the legal document that controls the decedent’s estate. The 1041 tax return is responsible for issuing the K-1’s to the beneficiaries to report the taxable income.

Gift Tax Returns

A gift tax return is generally required to be filed if the taxpayer gifts more than the annual IRS gifting allowance to any one person. The annual gift tax exclusion is currently at $15,000 for 2019 and will be indexed for inflation by the IRS.