Postmortem Planning for Estates

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Join Michael for this essential class on critical issues affecting the decedent. What is the significance of “Step Up in Basis” on decedent’s assets? What forms are required and may be recommended to be filed? What happens with a decedent’s Capital and Net Operating Losses? Who or What is a Personal Representative? Who can sign the decedent return if no estate is open? The importance of key “tax elections” and the impact of an IRC §454 election regarding Savings Bonds. We will define terms associated with the decedent, review filing dates, and separating income and expenses between the decedent (Form 1040) and estate (Form 1041).

Who Should Attend
All tax and financial professionals who prepare decedent tax returns, including Form 1040, Form 1041, Form 709 and Form 706

Topics Covered

• A checklist review to facilitate and maximize the quality of estate administration
• A checklist of forms and due dates for executor, administrator, or personal representative
• Income in respect of a decedent (IRC §691)
• Beneficiary, estates and trusts, difference between corpus and income, and distributions
• Review a worksheet designed to reconcile amounts reported in the name of the decedent on information returns
• The impact of estate property basis and inherited property distributed to a beneficiary
• How to handle an estate’s capital losses and net operating losses, respectively
• Review reporting of special assets such as partnerships, S corporation, real estate, etc
• The importance of using a fiscal year end for a decedent’s estate
• Review and discussion of a “potpourri” of importance tax and estate items associated with a decedent’s income tax return filing obligations

Learning Objectives

• Understand important terms and the importance of checklists
• Understand the forms, filing dates, and associated requirements
• Review the importance of maintaining and protecting a decedent’s identity
• Understand the responsibilities of the personal representative
• Understand who can sign returns and how to advise the IRS, who “is in charge” after the decedent’s death
• Understand the importance of basis in estate property
• Understand how to handle capital loss and net operating loss carryovers
• Understand the significance of making a proper fiscal year tax accounting period for the estate
• Understand what’s new and other important issues associated with a decedent’s estate

Level
Update

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A general understanding of general income tax concepts associated with individual, estates and trusts

Advance Preparation
None