Financial Briefs

More Articles  Printer Friendly Version

 

How Can We Help You Die In Peace?

"Financial peace of mind" is an overused term in financial services marketing. However, the help we provide in settling financial details of your estate indeed may bring you genuine—and eternal—peace of mind.

After you pass away, a personal representative, usually your executor, is required to prepare a regular income tax return in the year of your death (Form 1040). If any passive unearned income was paid to you after your death, for example, from real estate investments or businesses in which you are not an active participant, your executor must also file an estate income tax return (Form 1041). If you die this year, for example, your 1041 is going to be due on April 15th of the next year.

The executor of your estate also must apply for an EIN (Employer Identification Number). Your executor will also be responsible for informing various government entities, like the Social Security Administration, that you died. In addition, your personal representative or executor must provide detailed contact information where correspondence related to IRS and state tax filings can be sent.

In the unlikely event you have a taxable estate and trust—only about 1% of estates are federally taxable—your executor and trustee may need to file a Form 56, Notice Concerning Fiduciary Relationships, which arranges for the IRS to send tax correspondence. In addition, the estate will be required to tell the IRS if taxes will be paid annually on a calendar- or fiscal-year basis.

Where your death can become more complicated for your heirs, trustee, and executor is when they learn, after you're gone, that you underpaid the IRS. An executor or trustee would be obliged to confess to the IRS that you ran afoul of the rules and may owe them some money. Take comfort in knowing that the IRS often is forgiving about confessed mistakes.

As financial fiduciaries, we are available to counsel you on matters of trust and, yes, help you achieve financial peace of mind.


Email this article to a friend


Index
Is The Inverted Yield Curve The Financial Fakeout Of 2019?
Retirement Income Alert: Do You Own A $1 Million Plus IRA In A High Income-Tax State?
A Primer On Setting Up A Trust Fund
Three Strategic Mid-Year Tax Tips
How To Avoid State Income Tax On Distributions From IRAs
Watch The Fed Closely In The Months Ahead
Say Goodbye To Stretch IRAs And Get A New Plan
Tax Alert: Plan Now For The Demise Of Stretch IRAs
Prepare For A Sweeping New Law On Retirement Account Taxes
U.S. - China Trade War Coverage Distorts Economic Reality
How To Give Gifts And Not Trip On The Gift Tax
Give To Charity From An IRA To Lower Your Tax Bill
Staying Realistic About Investing Amid Volatile Market Swings
How To Swap Real Estate And Defer Taxes, Maybe Forever
As A Final Act of Love, Plan Thoughtfully

This article was written by a professional financial journalist for Blattel & Associates and is not intended as legal or investment advice.

©2019 Advisor Products Inc. All Rights Reserved.

The articles and opinions on this site are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your advisor with regard to your individual situation.
All summaries/prices/quotes/statistics presented here have been obtained from sources we believe to be reliable, but we cannot guarantee its accuracy or completeness. Past performance is no guarantee of future results.
When you access certain links on the Blattel & Associates website you may leave this website. We do not endorse the content of such websites nor the products, services or other items offered through such websites. Any links to other sites are not intended as referrals or endorsements, but are merely provided to the users of the Blattel & Associates website for convenience and informational purposes.
Robert Blattel is a CERTIFIED FINANCIAL PLANNERTM practitioner. The partners of Blattel & Associates are not registered in all states. Please contact us to verify availability in your state. This is not an offer to buy or sell any security.
CFP® and CERTIFIED FINANCIAL PLANNERTM are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.
Securities and Investment Advisory Services offered through Cutter & Company Brokerage, Inc., 15415 Clayton Road, Ballwin, Missouri 63011 * (636) 537-8770. Member FINRA/SIPC.
Privacy Policy can be read at http://www.cutterco.com/privacypolicy.htm.