Preparing to close an estate or trust often brings with it a major surprise: the Form 1040 isn't the only document that needs to be filed. Often the decedent's executor or personal representative didn't know they were responsible for so many tasks and tax duties in winding up their loved one's final debts to the IRS. This workshop will begin with finalizing Form 1040 and progress to filing the estate or trust’s Form 1041 return. We will focus on the importance of reading and understanding the will or trust document and how to properly reflect the terms of the document in the return preparation process. Using multiple exercises for various scenarios, this session provides a worksheet for summarizing the trust document and examples of revocable versus irrevocable trusts, spousal 'first-to-die' trusts, expense allocation, distribution rules, the IRC § 645 election, and the '65-day rule.' This course is certain to increase your awareness of these vital components of estate and trust planning.
After completing this course, you will be able to:
- Identify filing requirements for the final Forms 1040 and 1041
- Recognize what post-mortem elections are available for treatment of final income or expenses
- Recognize various provisions of trust documents
- Indicate why you can't prepare a Form 1041 from a Form 1099
- Cite the most frequently used elections available to trusts and estates
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