Trust and Estate Tax Preparation in San Diego 

trust and estate tax prep

Preparing income tax returns for estates and trusts may be complex. Estates and non-grantor trusts must file income tax returns just as individuals do. However, there are a few important differences to keep in mind. The income is taxed at either the entity or beneficiary level depending on whether it is allocated to principal or allocated to distributable income, and whether it is distributed to the beneficiaries. Some recent legislation such as the Medicare tax, Affordable Care and the Health Care and Education Reconciliation acts affect estate and trusts investment income.

If you are like most people, updating your estate plan is something that always seems to fall to the bottom of the list. However, the increase in the gift and estate tax exemption amount as a result of the Tax Cuts and Jobs Act of 2017, which became effective on January 1, 2018, makes it especially important for you to review your existing plan. The current exemption from estate taxes is $11,580,000 per person, meaning that each person may transfer that amount to their heirs before incurring an estate tax. Amounts transferred to heirs above the exemption amount are subject to a 40% tax.  Estate planning documents often contain “formula clauses” that reference the federal estate tax exemption amount, and with the large increase, documents that have not been updated may direct assets to be distributed in ways that were never intended. In addition, the new, higher exemption amount creates an opportunity to transfer additional assets before it is scheduled to expire at the end of 2025 or sooner if Biden wins the election and repeals the TCJA rules.

Thomas Huckabee CPA, has over 31 years experience handling tax and accounting issues that are specific to trusts and estates in the San Diego area.  Every estate plan has different circumstances and goals.  The administration of trusts and estates can be tricky to maneuver.  If you do not know the available elections, distribution requirements, and the filing deadlines you may come across some issues. We can help to minimize the stress and administrative burdens of the executors and heirs.  We can collaborate with your estate attorneys and financial planners to ensure that the estate plan minimizes tax liabilities and maximizes the benefits to the assigned heirs.   

Here are some common estate & tax trust questions that we are often asked:   

  • How are professional fees allocated towards income in preparation of a beneficiary’s K-1?     
  • What is the filing requirement for a US fiduciary income tax return (Form 1041) for an estate?
  • What is the year-end for a US fiduciary income tax return (Form 1041) for an estate?   
  • What kind of deductions can trusts and estates take to reduce their taxable income?  

Our skilled tax consulting advice is there to help you, as a trustee or executor, to make certain that your fiduciary duties specifically related to appropriate tax planning and tax reporting are being fulfilled.  Our services include annual reviewing of estate plans to see if there is any need for modification due to change tax rates, tax codes or any family circumstances.  We also can do analysis on any estate or trust documents to confirm that the trust or estate beneficiaries are maximizing their distributions or inheritance by minimizing the tax consequences.     

The Types of Estate and Trust Tax Services we Provide include:  

  • Charitable Trust Income Tax Preparation
  • Simple and Complex Income Tax Preparation    
  • Special Needs Trust Income Preparation   
  • Qualified Disability Trust Income Preparation    
  • Estate Income Tax Preparation
  • Estate Tax Returns   
  • Gift Tax Returns     

   Thomas Huckabee CPA can prepare the tax returns and give suggestions on strategies that focus on tax-efficient allocation of income and principal by trusts and estates, even if you already have a lawyer who is handling the administration of the trust or estate.  We collaborate with attorneys to ensure that your estate or trust is being managed in a manner that is most beneficial for your goals and circumstances.   

Estate Tax Return Preparation and Filing

Thomas Huckabee CPA is well versed in preparing estate tax returns, for both federal and state, when required.  Our years of experience in the preparation of fiduciary income tax returns, trust and probate court accounting and post mortem estate planning that can significantly save your estate tax burdens.    


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