Estate & Trust Tax Returns

Tax preparation with Elena Arsen, CPA, CMA · Arsen Accounting Services

Identify the estate or trust and its reporting period

A trust’s tax reporting depends on its circumstances and the rules for the particular year. Begin with the trust deed or will, creation or death date, trust account information and prior returns. Filing and disclosure requirements can change, so an earlier year’s treatment should not be assumed to apply automatically.

Separate estate activity from the deceased’s personal records

For an estate, keep records of income received after death, assets sold, expenses and distributions. The deceased person’s final T1 and an estate’s T3 serve different purposes. Clear separation of the records helps avoid treating all income as if it belongs on the same return.

Document distributions and beneficiaries

Provide dates, amounts and supporting details for distributions to beneficiaries, together with relevant residence information. T3 slips and other reporting may be needed depending on the income and its allocation. We review the information available and identify further records required before preparing the return.

Confirm the limits of the engagement

Tax return preparation does not replace legal advice about interpreting a will, administering a trust or distributing an estate. We can discuss tax reporting alongside your legal adviser or other professionals, with the appropriate consent. Any clearance-certificate work or additional filings should be included expressly in the agreed scope.