Gathering estate records for tax and accounting can help prepare for discussions with an estate attorney and tax practitioner. Identify the requested records and the work included in each engagement before making changes to accounts or ownership.
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Build an estate records inventory
Prepare an inventory of assets and gather the existing account and ownership documents for discussion with your estate attorney. Ask the attorney and financial institution for instructions before changing ownership or beneficiary information.
Organize the tax records
Gather previous returns, income statements, account statements, acquisition records and available valuations. Identify the person responsible for supplying documents and responding to follow-up questions.
Ask which filings need review
An estate or trust tax engagement should identify the taxpayer, periods, returns and elections to be assessed. Bring notices and deadlines to the practitioner promptly rather than assuming one form applies to every estate.
Keep responsibilities clear
Agree which tax records or accounting schedules the engagement includes. Direct legal-document and ownership questions to the separate attorney and relevant institution.
Additional tax and recordkeeping considerations
Inherited-property basis often is adjusted to fair market value at death or another applicable valuation basis, which can increase or decrease basis. Exceptions apply, and income in respect of a decedent, including taxable inherited retirement-account amounts, does not receive the same general basis treatment.
Federal estate-tax portability generally requires a properly filed Form 706 within nine months of death, or within an applicable filing extension. Certain estates not otherwise required to file may qualify for simplified late-election relief through the fifth anniversary of death under Revenue Procedure 2022-32. Confirm all conditions; this relief does not extend a required estate-tax return's ordinary deadline. See Form 706 instructions and Revenue Procedure 2022-32.
Related services and resources
Tax preparation · Business consulting · Bookkeeping · Form 706 instructions · Revenue Procedure 2022-32 · IRS Publication 559
Discuss your estate records and accounting needs
Contact Henriquez Accounting to discuss the records, questions and services needed. Confirm the scope, fees, responsibilities and meeting arrangements before engaging or traveling. Schedule a consultation.