Question

Ellen died with the following property house in joint tenancy with her boyfriend, stocks owned individually, a bank account held individually a bank account held individually and her household goods. what schedules must her executor complete?

Answer 1

Schedules and forms required to be filed by executor of Ellen for inheritance are

• Information about Beneficiaries (Form 8971)

Form 8971 is required to be filed thirty days after filing the federal estate tax return, provide the IRS with information about all beneficiaries and the property they inherited.

• Gift and Generation-Skipping Transfer Tax (Form 709)

Form 709 is required, to file a generation-skipping transfer (GST) tax return and/or gift tax return. It is often recommended that family members use their GST tax exemption to establish Delaware dynasty trusts that can last in perpetuity, ensuring that distributions to grandchildren and other remote descendants are not subject to any transfer taxes in the future.

• Estate and Income Tax (Form 1041)

Form 1041 is required, as estates and irrevocable trusts generally are separate taxpayers. That requires obtaining separate tax ID numbers and filing fiduciary income tax returns. These are specialized returns that require a CPA familiar with the filings.

• Final Individual Income Taxes (Form 1040)

Form 1040 is required as the estate or trust have tax returns to file. The executor or successor trustee is also responsible for ensuring the decedent’s final individual returns are filed, and addressing any issues with past filings.