Things to Consider BEFORE Year-End for Trusts

Lynda Doland, CPA, MT is a Director at Corrigan Krause and leads the Estate, Gift and Trust niche at the firm.

What are the year-end moves you should make if you are a trustee?

  • When you are collecting your personal tax data, watch for items sent that are issued in a trust ID number. Once you have collected all of your data, send it over to us! You can send us hard copies, or use our secure client portal ( our website) to scan and send to us electronically.
  • Send the most accurate and current statements to help speed up the tax return process. Many times 1099s for investments are amended.  Please let us know if that happens.
  • If you have any significant changes from 2018 or expect changes for 2019, be sure to let us know that, too! We want to make sure to calculate any future estimated tax payments as accurately as possible.  Relying on 2018 may not be the best approach.
  • Due to the new tax act, individuals are limited to $10,000 in deductions for state and local withholding and real estate taxes. The same is true for each individual trust.  Therefore, it’s more important than ever to pay these taxes out of the trust if the trust owns the real estate and pay the trust’s income taxes out of its assets.
  • Miscellaneous deductions, including tax preparation fees, are no longer deductible with the new tax act. Trusts can still deduct the cost of income tax preparation – this does not fall under the miscellaneous itemized category.  It is important that the trust pay its own tax preparation fees in order to deduct this cost.
  • Be sure to take any required distributions for the trust by 12/31/2018. Please report this amount to us on your Trust Questionnaire.

We are looking forward to working with you again this year!  Please don’t hesitate to send us an email, give us a call, or write us a note with any questions you may have.  We’re here to help!