Trust, Estate & Fiduciary Tax

Trust & Fiduciary Tax Services

Form 1041 trust and estate returns, estate and gift tax returns, and tax planning for trustees, executors and families.

Serving clients nationwide

Request a Free ConsultationSee what we handle
Illustrative trust income flowIncome earned by a trust is either kept in the trust and taxed on Form 1041, or distributed and reported to each beneficiary on a Schedule K-1.Who pays tax on trust incomeDistributable net income decides where it landsThe trustInterest, dividends, capital gains and rentsKept in the trustTaxed at compressed ratesDistributedTaxed to beneficiariesForm 1041Trust’s own returnK-1Benef. 1K-1Benef. 2K-1Benef. 3Illustrative example

A trust or estate is a taxpayer in its own right, with its own deadlines and some of the steepest brackets in the tax code. We prepare the returns and plan distributions so income is taxed where it costs the family least, and we work alongside your estate attorney from the first year to the final return.

For the people who carry out the plan

We work with trustees and executors, families moving wealth to the next generation, and the attorneys and advisors who set up their plans.

Trustees

Family and individual trustees

Family members, friends and professionals serving as trustee who want the filings handled correctly and explained in plain terms.

  • Annual Form 1041 and beneficiary K-1s
  • Grantor or non-grantor status confirmed from the trust document
  • Distribution timing reviewed before year-end
  • Estimated tax payments for the trust
Executors & Administrators

Estates after a death

Personal representatives settling an estate, from the decedent’s final personal return to the estate’s last fiduciary return.

  • The decedent’s final Form 1040
  • Estate income tax returns on Form 1041
  • Form 706 estate tax return and portability election
  • Final return passing unused losses and deductions to heirs
Families

Families planning ahead

Parents and grandparents moving wealth to the next generation through gifts and trusts.

  • Form 709 gift tax returns
  • Lifetime exemption tracked from year to year
  • Generation-skipping transfer exemption allocated
  • Income tax effect of gifts reviewed with your attorney
Attorneys & Advisors

Estate attorneys and wealth advisors

Professionals who need a CPA for the tax filings of the trusts and estates they set up or oversee.

  • Tax input while trusts are drafted and funded
  • Returns filed on your clients’ timelines
  • Tax projections for planning conversations
  • One point of contact for each family

The tax work behind every trust and estate

Filing on time is the baseline. Most of the value comes from deciding where income is taxed and keeping clean records, because those choices follow the trust for as long as it exists.

Form 1041 trust and estate returns

Federal fiduciary income tax returns for simple, complex and grantor trusts and for estates, with Schedule K-1s that tell each beneficiary exactly what to report.

Distributions and DNI

We calculate distributable net income and the distribution deduction, and use the 65-day election when it helps, so income is taxed in the lower bracket where the trust allows it.

Form 706 estate tax returns

Estate tax returns for taxable estates, and for smaller estates electing portability so a surviving spouse keeps the unused exemption, with Form 8971 basis reporting when required.

Form 709 gift tax returns

Gift tax returns for gifts above the annual exclusion, gifts to trusts, gift splitting between spouses, and allocations of generation-skipping transfer exemption.

Trust and estate tax planning

Grantor versus non-grantor analysis, distribution planning around the compressed trust brackets and the 3.8% net investment income tax, and the income tax side of the estate plan.

State fiduciary returns

State trust and estate returns wherever the trust is taxed, which can depend on where the grantor lived, where the trustee is, or where the beneficiaries live.

Across the life of a trust

The tax decisions start before the first return

How a trust is drafted, funded and administered decides who pays tax on its income for years to come. We stay involved at each stage, so the trustee knows the tax effect before acting.

  1. Setting up

    Tax input while your attorney drafts the trust: grantor or non-grantor status, who pays tax on the income, and how distributions are meant to work.

  2. Funding and gifts

    Gift tax returns for assets moved into the trust, gift splitting between spouses, and GST exemption allocated where the plan calls for it.

  3. Annual administration

    Form 1041 and beneficiary K-1s each year, estimated tax payments, and distribution planning before year-end and within the 65-day window.

  4. After a death

    The final Form 1040, the Form 706 estate tax return or portability election, the Section 645 election, and basis step-up for inherited assets.

  5. Final distribution

    The final Form 1041, with unused losses and excess deductions passed through to beneficiaries, and records the trustee or executor can keep.

Fiduciary tax work, explained in plain terms

Trustees and executors are often family members doing this for the first time. We handle the filings and explain what each one means and when it is due, so you can carry out your duties with confidence.

We start every engagement by reading the trust document or will. How it defines income and principal, and what the trustee may distribute, decide how the return is prepared and who pays the tax.

And because trust brackets are so compressed, timing matters. We look at distributions before year-end, while there’s still time to act.

What working with us looks like

  • A licensed CPA firm serving clients nationwide
  • The trust document read before the first return
  • Beneficiary K-1s with a plain-language summary
  • Distribution planning before year-end, not after
  • Direct coordination with your estate attorney
  • Scope and fees agreed in writing before work starts

From first call to first return

  1. Review the documents

    We read the trust agreement or will, prior returns and account statements, and for an estate, the date-of-death values.

  2. Set up the file

    We confirm the trust’s tax status and EIN, and set up the income, principal and basis records it needs.

  3. Prepare and deliver

    Returns are prepared, reviewed and delivered on schedule, with K-1s for each beneficiary and a summary for the trustee.

  4. Plan ahead

    We review distributions and estimated taxes before year-end and stay involved through the final return.

Trust and estate taxes, answered

Does every trust need to file Form 1041?
Not every one. A trust must file Form 1041 if it has any taxable income, gross income of $600 or more, or a beneficiary who is a nonresident alien. An estate files if its gross income is $600 or more. A grantor trust, including most revocable living trusts while the grantor is alive, is usually reported on the grantor’s own return, though it may still file a Form 1041 or use one of the optional reporting methods. We confirm the trust’s status from the document before the first return.
When is Form 1041 due?
For a calendar-year trust or estate, Form 1041 is due April 15, and an extension moves the deadline to September 30. An estate may choose a fiscal year instead, which can help with timing in the first year after a death. Beneficiaries need their K-1s to file their own returns, so we agree on delivery dates with the trustee or executor at the start.
Why are trusts taxed so heavily?
Trusts and estates reach the top 37% federal bracket at a small fraction of the income that would put an individual there, and the 3.8% net investment income tax starts at the same low level. Income distributed to beneficiaries is generally taxed to them instead, often at lower rates. That is why distribution planning matters, as long as distributions fit what the trust document allows and what the family wants.
What is the 65-day election?
A trustee or executor can elect to treat distributions made in the first 65 days of the new year as if they were made in the prior year. It gives you time after year-end to see the trust’s actual income and decide how much to distribute. The election is made on the trust’s Form 1041 for that year.
Do we need to file an estate tax return if no estate tax is owed?
Often it is still worth filing. Most estates fall below the federal exemption, which is $15 million per person in 2026. But when a married person dies, filing Form 706 lets the surviving spouse keep the unused exemption through the portability election. Form 706 is due nine months after the date of death, with a six-month extension available, and in some cases the IRS allows a late portability election for up to five years. Some states have their own estate tax at much lower thresholds.
When do I need to file a gift tax return?
Generally when you give one person more than the annual exclusion in a year, when you and your spouse elect to split gifts, or when you give a future interest, such as most gifts to a trust. Most people owe no gift tax because the gift uses part of their lifetime exemption, but the return is still required to track it. Form 709 is due April 15 of the following year and is extended along with your personal return.
What is the difference between a grantor and a non-grantor trust?
With a grantor trust, the person who created the trust is treated as owning its assets for income tax purposes and reports its income on their own return. A non-grantor trust is a separate taxpayer that files its own Form 1041 and pays tax on the income it keeps. The status depends on specific powers in the trust document, so we read it before deciding how to report.
Can you work with our estate attorney?
Yes. Your attorney drafts the documents and gives legal advice, and we handle the tax returns and the income tax side of the plan. We’re glad to coordinate directly so the two stay in line. Everything can be handled remotely, so we work with trustees, executors and attorneys across the country.

Bring us the trust document early

Request a free consultation. Share the trust agreement or will, and we’ll explain the filings it requires, the deadlines, and the tax decisions to make this year.

Request a Free Consultation