What we prepare
We prepare Form 1041 (Income Tax Return for Estates and Trusts) along with the Schedule K-1s to each beneficiary, and we handle the final individual return for a decedent when that coincides with the estate filing.
Common situations
Most of our trust and estate work falls into one of these categories:
- Revocable living trusts that became irrevocable on death
- Testamentary trusts funded by a will
- Estates in the year of death and the following year
- Inherited IRAs and the 10-year distribution rule under SECURE
- Real property sales by the estate or trust
What executors and trustees should gather
The first return goes faster when the paperwork arrives together. The usual packet looks like this:
- Death certificate and letters of administration, if an estate
- The trust instrument or will
- The EIN assigned to the estate or trust
- Year-end bank and brokerage statements for estate or trust accounts
- Closing statements for any property sold
- The decedent's prior-year individual returns
The first-year decisions
The first 1041 sets choices that carry forward: calendar versus fiscal year, whether to distribute income before year-end so it lands with beneficiaries at their individual rates, and the Section 645 election that lets a revocable trust be taxed with the estate. These are inexpensive to get right at the start and expensive to unwind later.
Working with attorneys
Most estate and trust work runs alongside an attorney handling the probate or trust administration. We coordinate directly with them so the accounting, tax, and legal work stay aligned.
Common questions
- Does every trust have to file a return?
- Not always. Revocable living trusts typically don't file their own return while the grantor is alive. Once the trust becomes irrevocable, or at any time an irrevocable trust has gross income of $600 or more, a 1041 is required.
- What's the deadline for an estate return?
- Form 1041 is due April 15 for calendar-year filers, with an extension available to September 30. Estates can also elect a fiscal year ending in any month.
- Do beneficiaries pay the tax or does the trust?
- Depends on whether income is distributed. Distributed income flows through to beneficiaries on K-1s and they pay at their individual rates. Retained income stays with the trust at the compressed trust rates.
Related
Personal Income Tax Preparation
Federal and state 1040 preparation with year-round planning. We handle W-2, 1099, K-1, rental, and crypto income for individuals in Florida and all 50 states.
Amended Tax Returns
File Form 1040-X to correct a prior year return within the three-year window. We handle federal and state amendments for missed income, deductions, or credits.
Other services we offer
Tax Planning
Year-round tax planning for individuals and business owners. We project the year's income quarterly and model decisions before they become tax liabilities.
Corporation & Partnership Tax Returns
Forms 1120, 1120-S, and 1065 preparation for corporations, S-corps, and partnerships, plus owner K-1s, shareholder basis tracking, and multi-state filings.
Sales Tax Planning
Florida sales tax registration and multi-state nexus filings. We handle monthly DR-15 returns and correspondence with the Florida Department of Revenue.
Business Tax Planning
S-corp reasonable salary analysis, entity elections, retirement plan structuring, and Section 179 and bonus depreciation planning for small business owners.