Estate Tax Preparation
Preparation of estate, trust, and gift tax returns. We handle the specialized filings required when wealth transfers between generations and ensure everything stays compliant and tax-efficient.
What This Involves
Estate, trust, and gift tax returns are specialized filings that most people encounter rarely if ever. Estate tax returns are required when someone passes away with assets above the federal exemption threshold. Gift tax returns are required when someone makes large gifts during their lifetime. Trust tax returns are required annually for trusts that earn income.
These aren’t like the 1040 you file every April. They require knowledge of estate law, asset valuation methods, and tax elections that most preparers never work with. They also tend to come during difficult times when families are dealing with loss and the last thing anyone wants to think about is paperwork.
Estate Returns
Estate Returns
Form 706 is required for decedents with estates exceeding the federal exemption. The return requires a complete inventory of assets, proper valuations, and claims for allowable deductions. Portability elections can transfer unused exemption to a surviving spouse, but only if you file correctly and on time.
Gift and Trust Returns
Gift and Trust Returns
Form 709 is filed when gifts exceed the annual exclusion amount. Form 1041 is filed each year for trusts that generate income. These returns often continue for years as trusts remain active, requiring ongoing attention to keep everything compliant.
The Stakes
Estate returns must be filed within nine months of the date of death. During that window, someone has to inventory every asset the decedent owned, obtain appraisals for real estate and business interests, gather years of financial records, and prepare a return that may involve millions of dollars in valuation decisions.
The IRS reviews these returns carefully because of the dollar amounts involved. Valuation disputes are common. Elections made on the return can affect the tax basis for heirs for decades. Getting it wrong can mean paying more estate tax than necessary, leaving money on the table through missed elections, or triggering an audit that drags on for years.
Valuation Challenges
Valuation Challenges
Real estate, business ownership interests, and unique assets all require proper appraisal. The value reported on the estate return affects both the estate tax liability and the tax basis that heirs inherit. Undervalue and you risk penalties. Overvalue and heirs pay more capital gains tax when they eventually sell.
Deadline Pressure
Deadline Pressure
Nine months sounds reasonable until you account for probate proceedings, locating accounts, gathering documentation, coordinating with attorneys, and the reality that families are grieving. Extensions for filing are available, but the estimated tax payment is still due at nine months regardless.
What You Get
We prepare your estate, gift, and trust returns as Enrolled Agents licensed to practice before the IRS. If questions arise or the IRS requests additional information, we handle the response. You’re not just getting a tax form prepared. You’re getting representation from practitioners who can advocate on your behalf.
We work alongside your estate attorney, financial advisors, and family members to gather everything needed. We prepare accurate returns, make beneficial elections, and ensure you’re claiming every deduction available. Our goal is a clean filing that holds up to scrutiny and protects the wealth you’ve built.
Accurate Filing
Accurate Filing
Every asset properly valued and reported. All available deductions claimed. Portability elections filed when they benefit the surviving spouse. The return is prepared with documentation to support each position if the IRS ever asks questions.
Ongoing Support
Ongoing Support
Estates can take years to fully settle. Trusts often require annual filings indefinitely. We handle those ongoing returns and keep everything current. If a notice arrives from the IRS or state tax agency, you have Enrolled Agents who will respond and resolve it.
The Treasure Valley's Tax and Accounting Team
The Next Step:
A Short Conversation
Tell us what you're dealing with. We'll listen, answer your questions, and give you a straightforward quote.
