Some of your clients have estate plans that provide for testamentary trusts. Other clients make gifts to irrevocable trusts during their lifetime. And some will die with probate estates.
Any tax practitioner who wishes to understand how to assist clients with filing a federal gift tax return.
- Understand how to file a basic income tax return for an estate or trust – form 1041
- Passive activity rules for trusts including the NIIT
- The different types of trusts for income tax purposes (e.g. simple, complex, grantor, charitable)
- The critical categorization of income (taxable income vs. fiduciary accounting income)
- Distributable net income (DNI) and how it works
- The “Tier” Rules
- The Separate Share Rule
- IRC 663(b) “65-Day” Rule
- IRC §691(c) Deduction
- QSST and EBST elections
- How to treat excess deductions on termination
- Grantor trust rules and how they impact planning and return preparation
- The income tax side of Domestic Asset Protection Trusts
Intermediate understanding of federal income tax.