Attention Executors and Trustees, Another Tax Deadline Nears

As the end of 2011 draws near, another year winds down.  From the IRS’s standpoint, if you are an Executor or Trustee of an Estate or Financial entity, it can be their last time to visit if you complete your duties by year-end.

In most situations 12-31 of each year marks the end of the tax reporting for Estates, Trusts and other Estate planning entities. For Executors and Trustees who are able to wind down by year-end (we understand many have extended duties), it may save you significant tax reporting/issues.

Here are a few tips:

  • If you can finish your duties by year-end, do it. If you have items that push into the next tax year, by just a day, it could mandate another year of tax filings and federal income tax reporting.
  • Each new tax year exposes your entity to tax law changes. A tax law of some type changes every year. Trust and Executors are in the bull’s eye of tax changes some years, with these changes being difficult to predict, closure, sooner than later may be better.
  • If liquid cash/money market is all that remains in an Estate account for shot term possible future needs, consider a non-interest bearing estate checking account. (Not recommended for large or long time horizon needs.) By having no reported interest on the afore-mentioned account, future filings may be avoided.
  • Attempt to transfer ownership/titles to the respected beneficiaries by year. The farther along one can continue in the process the better. If it appears you are not able to finish by year-end, keep the process going, every little bit helps in the long run.

Pushing past the year-end deadline is sometimes unavoidable, do not fret, just do the best you can, and understand that if you do, even by a week or a few days, you may be subject to another year of federal filings.

We are not Attorneys or CPA’s, as such this information is for informational purposes. Please contact your respected advisor for information specific to your situation.

Have A Great Day!



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