Estate, Gift & Trust Tax
When a family member passes away, or when you start transferring wealth during your lifetime, the tax filings change. We prepare the estate, gift and trust returns that executors and trustees are responsible for, and explain each step along the way.
How Nelson & Associates handles Estate, Gift & Trust Tax
Executors and trustees carry legal responsibility for filing returns and paying tax on time. We prepare the decedent's final Form 1040, the estate's or trust's income tax returns on Form 1041 and, when needed, the federal estate tax return on Form 706. For lifetime giving, we prepare Form 709 to report gifts above the annual exclusion and track how much of your lifetime exemption has been used.
Under current law the federal estate and gift tax exemption is $15 million per person for 2026, indexed for inflation afterwards. Many estates owe no estate tax, but they may still benefit from filing Form 706 to make a portability election that passes the unused exemption to a surviving spouse. We work alongside your estate planning attorney so the tax filings match the legal documents.
Who this is for
- Executors and personal representatives of an estate
- Trustees of revocable, irrevocable and family trusts
- Surviving spouses deciding on a portability election
- Families making large gifts to children or grandchildren
- Beneficiaries receiving K-1s from estates and trusts
- Families with heirs or assets outside the U.S.
Everything covered in our Estate, Gift & Trust Tax service
- Decedent's final individual income tax return
- Estate and trust income tax returns (Form 1041) and K-1s
- Federal estate tax return (Form 706), including portability elections
- Gift tax returns (Form 709)
- Date-of-death basis and valuation coordination
- Distribution planning to reduce combined tax
- EIN applications for new estates and trusts
- Coordination with your estate planning attorney
The paperwork behind Estate, Gift & Trust Tax
| Form 1041 | U.S. Income Tax Return for Estates and Trusts |
|---|---|
| Schedule K-1 (1041) | Beneficiary's share of income and deductions |
| Form 706 | U.S. Estate (and Generation-Skipping Transfer) Tax Return |
| Form 709 | U.S. Gift (and Generation-Skipping Transfer) Tax Return |
| Form 56 | Notice concerning fiduciary relationship |
| Form 8971 | Information on basis of property acquired from a decedent |
What we’ll need from you
Have these ready and your first meeting goes faster. Missing something? We’ll help you find it.
- Death certificate and letters of administration or trust agreement
- Will and trust documents
- Date-of-death statements for bank and brokerage accounts
- Real estate appraisals or valuations
- Records of income received after the date of death
- Debts, final expenses and administration costs
- Records of gifts made during life
How it works, step by step
Initial meeting
We review the documents and list every filing the estate or trust needs.
Gather and value
We collect statements and coordinate valuations and basis.
Prepare returns
Final 1040, 1041, 706 or 709 are prepared and reviewed with you.
Close out
We issue K-1s, answer IRS questions and help close the estate.
Why clients choose us for Estate, Gift & Trust Tax
Fiduciary experience
We know the deadlines and elections executors often miss.
Attorney coordination
Tax filings line up with the will, trust and probate process.
International families
Experience with foreign heirs and assets held abroad.
Patient guidance
We explain each step clearly during a difficult time.
Estate, Gift & Trust Tax across the United States
From our Doral office we provide Estate, Gift & Trust Tax to clients in all 50 states and Washington, D.C. Hover over a state to see its tax profile and the cities we serve; tap it to open the state page.
Services clients often pair with this
Estate Planning
Tax-focused estate planning that protects your family, reduces taxes and coordinates with your attorney's documents.
Learn more Business Accounting & AdvisorySuccession Planning
Plan the transfer of your business to family, partners, employees or a buyer, with the tax consequences mapped out in advance.
Learn more Tax Preparation & PlanningForeign Investors & FIRPTA
Tax support for foreign nationals buying, renting or selling U.S. real estate, including FIRPTA withholding, refunds and ITINs.
Learn more Tax Preparation & PlanningIndividual Tax Preparation
Federal Form 1040 and any required state returns for employees, families, retirees and investors, prepared by a CPA firm and reviewed line by line.
Learn moreMore in Tax Preparation & Planning
Estate, Gift & Trust Tax FAQs
6 answers to the questions clients ask most. Don’t see yours? Ask us directly.
Does every estate need to file an estate tax return?
No. Only estates above the filing threshold must file Form 706, but a surviving spouse's estate may benefit from filing to elect portability of the unused exemption.
What is the difference between Form 1041 and Form 706?
Form 1041 reports income the estate or trust earns, such as interest, dividends or rent. Form 706 reports the value of everything the person owned at death and calculates any estate tax.
Do I need to file a gift tax return?
You generally need Form 709 if you give any one person more than the annual exclusion in a year, or make certain other gifts. Most people owe no gift tax; the return tracks use of the lifetime exemption.
Does Florida have an estate or inheritance tax?
No. Florida has no state estate tax or inheritance tax, though estates may still owe federal estate tax or another state's tax on property located there.
What basis do heirs get?
Most inherited property gets a basis equal to its fair market value at the date of death, which can eliminate gain that built up during the owner's lifetime.
Do you offer Estate, Gift & Trust Tax outside Florida?
Yes. Our office is in Doral, Florida, and we work with clients across the United States and abroad through secure uploads, phone and video meetings and e-signatures. South Florida clients are welcome to meet with us in person.
Talk to a CPA about Estate, Gift & Trust Tax.
Your initial consultation is free. Call us, email us or visit our Doral office, and we’ll tell you exactly what you need and what it will cost.