It’s that time of year where someone can say one word and it makes your skin crawl…taxes. While we know it comes up the same time every year, we sit and procrastinate on doing them. This method works for most, but generally speaking, we have the system down for what needs to be filed. For some, you may not only have to do taxes for yourself, but you may also have to do taxes for a trust in which you serve as trustee. Not everyone is well versed in this, especially since becoming a trustee can spring upon you unexpectedly. It is always best to consult your CPA in how to go about filing these returns. Here is some of the information that you will need:

ÿ        The name of the Estate or Trust

ÿ        The date the Trust was created

ÿ        The date of death of the decedent

ÿ        A copy of the Will and a copy of the Trust (The Will may be the Trust document if the trust is testamentary)

ÿ        The EIN number issued by the government (Trustee applies for this; it is much like a social security number for an individual)

ÿ        A copy of the death certificate

ÿ        The information for all of the beneficiaries including names, addresses, and social security numbers

ÿ        A copy of the last returns filed for the decedent

ÿ        A list of assets

ÿ        An accounting (if one has been completed for the current fiscal year)

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

But I am so busy preparing my taxes I don’t have time to do my living trust!

The most popular excuse for putting of the creation of your living trust: “It’s tax season and I am SO busy getting everything ready to file my taxes!” BUT it’s the BEST time to do your living trust! One of the most important parts of creating a living trust is “funding” the trust. In other words you want to title your assets in the name of your trust, and often times in the process of preparing your tax return you have gathered statements for the various brokerage account, bank accounts, any account you will be reporting income or interest on for tax purposes. Another reason why tax time is a great time to create a living trust is the opportunity to have your professional advisors work together to create the best estate plan for you and your financial situation. If you have a professional tax preparer, such as a CPA, prepare your taxes you probably only see them once or twice a year– this is a good time to let them know you will be creating a living trust and to get valuable feedback. It is also a good idea to talk to your financial advisor. With express written consent from our clients we often work with other professionals to create a cohesive estate plan. So what are you waiting for? It’s the new year, you are in the process of gathering a lot of information, take one more step and finish your new year resolution to do your estate planning!

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.