Fiduciary Income Tax

When a person dies, his or her estate and trust must file a Fiduciary Income Tax Return, IRS Form 1041 if the estate or trust has a gross income of $600 or more. Fiduciary Income Tax Returns are separate and distinct from individual income tax returns, IRS 1040.

There are various tax elections that may be made when filing a Fiduciary Income Tax Return in order to defer or minimize taxes. Similarly, how the estate or trust is administered following a person's death will have tax consequences that should be considered when administering an estate or trust. This is because estates and trusts are taxed at a significantly higher tax rate than individuals.

If you are a personal representative or trustee administering an estate or trust and wish to discuss the tax concerns involved in administering an estate or simply want a referral to an experienced accountant, please contact us (888-526-4489).