Tax Preparation and Advice
With the death of a loved one there can be a number of tax issues to contend with. Our tax attorneys can assist with all of the following matters:
Final Income Tax Return (Form 1040) – The personal representative or successor trustee is responsible for filing the decedent’s final income tax return. Our attorneys can prepare the final income tax return and maximize any available deductions and credits.
Fiduciary Income Tax Return (Form 1041) – Just as an individual must file an income tax return during life, an estate or trust must also file an income tax return when there is taxable income. When coordinated with the overall estate administration an estate or trust can take advantage of certain deductions which also benefit the estate heirs or trust beneficiaries.
Estate Tax Return (Form 706) – Although the majority of decedent’s estates do not have to file an estate tax return, there are cases in which a trust or estate must file or a surviving spouse will want to file a Form 706 in order to elect portability. Our tax attorneys can prepare a thorough and complete estate tax return that complies with IRS code and regulations.
Tax Planning and Tax Mitigation Strategies – We assist our clients with planning the most advantageous strategy to address federal and state tax issues specific to decedent estates and trusts. With proper planning in some cases we can minimize taxes and therefore maximize distributions to trust beneficiaries and heirs. This is especially the case when dealing with decedent’s qualified retirement accounts (IRA’s and 401k’s), U.S. Savings Bonds, and real estate. Don’t miss a deduction or an opportunity to minimize taxes by ignoring this important aspect to estate administration.
Disclaimer: Any tax advice contained in this communication was not intended or written by us to be used, and may not be used by you or anyone else, for the purpose of avoiding penalties imposed by the Internal Revenue Code, or promoting, marketing, or recommending to another party any tax-related matter addressed in this communication.
Professional Trustee and Fiduciary Services
Most often family or friends are asked to be successor trustees but in some cases it makes sense to name an outside party as successor trustee. This is most common in those situations where there is a second marriage with children from a first marriage, children or beneficiaries that do not get along, or when a dispute or litigation is possible upon the death of the individual. In other cases a professional trustee is desired simply to avoid burdening family members with an administration, when there is not someone suitable who can act, or when a professional trustee can provide knowledgeable and efficient services to the beneficiaries. Last, with the enactment of the Qualified Dispositions in Trusts Act in 2017, domestic asset protection trusts (DAPT’s) are now recognized under Michigan law but require a Michigan based trustee. Our attorneys can provide professional trustee services and are available for consultation. If you are interested in these services please contact our office to speak with an attorney.