All taxpayers must make arrangements for an Executor to file their final tax return (1040) following the year of death. For High net worth individuals, their estate must also file an estate tax return or 706 within 9 months of death. If you are a taxpayer that makes large gifts to family members throughout the year, you must also file a Form 709 to let the IRS the amount and to whom a gift was made. Many taxpayers can also benefit by tagging certain gifts to take advantage of Generation Skipping Transfers (GST). At Killingsworth Spencer, we can assist you with the proper accounting for estate and trusts.
Our firm has the capability to oversee a number of estate and business succession and transition scenarios and advocate for our clients’ best interests while working with their attorneys and financial advisors. It may seem a bit strange at first for your CPA to ask to see copies of your Wills, Trusts, and business successional planning documents, however, we feel that “an ounce of prevention is perhaps worth several pounds of cure”. In our 30+ years of practice, we have worked with families when loved ones pass away, have children with special needs, have adult children with substance abuse issues, and so forth. Through long relationships of successful tax planning, we frequently become a trusted advisor when needing referrals in these areas. We see our role as your advocate.
“When was the last time you ran a “fire drill” on your estate plan to find the issues that may create problems? You do not want to get caught with an inadequate plan or documents that may be in DIRECT CONFLICT with your current objectives, banking covenants, or other agreements you may have written. You would not believe some of the things we have seen go wrong when the documents are no longer in sync with a client’s current objectives.”