Charitable bequests are a cornerstone of many estate plans, yet improper drafting or reporting can significantly reduce the intended tax benefits or create compliance risk. This course guides tax and accounting professionals through the complex rules governing charitable bequests reported on the federal estate tax return (Form 706) and the fiduciary income tax return (Form 1041). Participants will examine how specific bequests, property transfers, and residuary charitable interests are treated for estate and income tax purposes.
The course addresses percentage‑based charitable residuary bequests, circular calculations on Form 706, and the requirements for claiming charitable income tax deductions on Form 1041. Emphasis is placed on common reporting pitfalls, coordination with governing documents, and best practices for maximizing charitable deductions while remaining compliant with IRS rules.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Publication Date: July 2026
Designed For
This course is designed for professionals involved in estate and fiduciary tax planning and compliance.
Topics Covered
- Types of charitable bequests and their tax treatment
- Reporting charitable transfers on Form 706
- Calculating deductions for percentage‑based residuary bequests
- Charitable income tax deductions on Form 1041
- Common post‑death reporting errors and IRS challenges
- Best practices for estate and fiduciary charitable reporting
Learning Objectives
- Differentiate between specific and residuary charitable bequests for federal estate tax purposes
- Calculate allowable charitable deductions when preparing Form 706
- Analyze eligibility for charitable income tax deductions on Form 1041
- Apply IRS rules to percentage‑based charitable residuary bequests
- Identify drafting and reporting practices that maximize charitable deductions and minimize risk
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
Basic understanding of Trust and Estate Taxation
Advance Preparation
None
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.