• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

• Norristown Pa Probate Lawyers •

• John B Whalen Jr Esq •

  • Home
    • About
    • Areas
    • Archives
    • Blog
    • Consults
    • Contact
    • Resume
    • Subscribe
  • Norristown Pa Estates
  • Norristown Pa Powers
  • Norristown Pa Probate
  • Norristown Pa Wills
Home • Norristown Pa Estates Taxation • Norristown Pa Estate Taxation Lawyers

Norristown Pa Estate Taxation Lawyers

norristown-pa-estate-taxation-attorneys-lawyers

Table of Contents

  • Norristown Pa Estate Taxation Lawyers
  • Interests Served
  • Approved Fiduciary Accountings
  • Fiduciary Tax Returns – Form 1041
  • Closing Out a Fiduciary Relationship

Norristown Pa Estate Taxation Lawyers

When an individual acts in a fiduciary capacity such as a Pa Executor of a Pa Last Will or a Pa Trustee of the financial assets of another person or entity, they have the responsibility of keeping accurate financial records.

Those records should show how money was spent, invested or distributed while under the fiduciary’s care and control. Proper accounting can bring to light the mismanagement or bad investment of funds should an issue arise with an interested party.

Interests Served

There can be a number of interested parties who may want to examine the financial records and approved fiduciary accountings. They are entitled to receive copies of all the materials such as profit and loss statements, expense reports and tax returns. You may request documentation if you are:

  • a beneficiary of an estate or trust
  • a principal of an agent acting on your behalf
  • a minor whose care is being administered through a third party fiduciary agent
  • the court who must evaluate financial matters in relation to a trust or estate

Approved Fiduciary Accountings

Certain procedures must be followed when reports are prepared to explain how the assets in an estate or trust were managed. Approved fiduciary accountings require the separation of principal and interest. You can not commingle funds that are considered principal with those that are considered income.

  • Principal = original investment + capital gains – capital losses – expenses – distributions
  • Income = money generated from the investment or use of principal

The main reason for keeping principal and income in separate accounts is that the beneficiaries of income in a trust or estate may be different than the beneficiaries of the principal in the same estate or trust.

Fiduciary Tax Returns – Form 1041

A trust or an estate is considered a separate legal entity from an individual who may be a beneficiary of that trust or estate. Therefore, it is incumbent upon the fiduciary administering the estate or trust to file a federal tax return under certain conditions.

The IRS requires a trust to file a tax return if it has any taxable income or has gross income of at least $600, regardless of whether it is taxable or not. Estates must file Form 1041 if they have gross income of $600 or more. A fiduciary must also file a return if any of the beneficiaries of the estate or trust is a non-resident alien.

Form 1041 is similar to the 1040 return used by individuals. The form is designed so estates and trusts can report income, deductions, gains, losses and any other pertinent financial information. Before funds or assets can be distributed, any tax liabilities of the estate or trust must be satisfied.

Closing Out a Fiduciary Relationship

Once all of the assets of an estate or trust have been distributed or otherwise settled, it is customary that the fiduciary is released from further responsibility. That may be done by signing a release form through the court or an agreement with the beneficiaries of the estate or trust.

Dealing with estate taxation can be complex. Estate taxation attorney John B. Whalen, Jr., provides guidance to his clients when dealing with these complicated issues.

Filed Under: Norristown Pa Estates Taxation Tagged With: Pa Inheritance Taxes

About John B. Whalen, Jr., Esq.

John B. Whalen, Jr., JD., LL.M., is an AV Peer Review Rated Preeminent 5.0 and Avvo Rated 10.0 Superb (obtaining over 95 client reviews and peer endorsements) premier and prestigious Attorney and Counselor at Law. He is featured on Martindale.com, Nolo.com, Avvo.com, Lawyers.com, Justia.com, Lawyers of Distinction, and Linkedin. He has amassed over 60 prestigious professional awards and over 5000 client reviews and endorsements.

He provides free initial consultations all seven days, provides home visits, a provides flat fee client structures. He can be reached by email at jw60297@me.com, and by telephone at 1-610-407-0220. He serves all surrounding counties, on all 7 days, from 9:00 AM to 10:00 PM, and on evenings, weekends, and holidays. His main office is located at 1199 Heyward Road Wayne Pa 19087. He can be reached by email at jw60297@me.com, and by telephone at 1-610-407-0220.

Primary Sidebar

Categories

  • Norristown Pa Attorneys Probate (1)
  • Norristown Pa Estates Administration (1)
  • Norristown Pa Estates Litigation (4)
  • Norristown Pa Estates Planning (7)
  • Norristown Pa Estates Probate (4)
  • Norristown Pa Estates Taxation (1)
  • Norristown Pa Lawyers Awards (2)
  • Norristown Pa Lawyers Locations (13)

Popular Tags

  • Pa Agents (3)
  • Pa Beneficiaries (4)
  • Pa Estates (1)
  • Pa Executors (3)
  • Pa Guardians (1)
  • Pa Guide Estates (1)
  • Pa Guide Probate (1)
  • Pa Inheritance Taxes (2)
  • Pa Last Wills (6)
  • Pa Living Wills (3)
  • Pa Powers of Attorney (4)
  • Pa Probate Law (11)
  • Pa Surrogates (1)
  • Pa Trustees (2)
  • Pa Trusts (3)

Sitemap

  • Home
    • About
    • Areas
    • Archives
    • Blog
    • Consults
    • Contact
    • Resume
    • Subscribe
  • Norristown Pa Estates
  • Norristown Pa Powers
  • Norristown Pa Probate
  • Norristown Pa Wills

Norristown Pa Probate Lawyers

https://www.youtube.com/watch?v=zNQkqQ1WTOU

Norristown Pa Probate Lawyers

https://www.youtube.com/watch?v=WbfBdHu6KtI

Norristown Pa Probate Lawyers

https://www.youtube.com/watch?v=-9EKHlx21Lk

Footer

Serving All Surrounding Areas

  • Montgomery County Pa Probate
  • Abington Pa Probate Attorneys
  • Audubon Pa Probate Attorneys
  • Eagleville Pa Probate Attorneys
  • Gulph Mills Pa Probate Attorneys
  • Jeffersonville Pa Probate Attorneys
  • King of Prussia Pa Probate Attorneys
  • Norristown Pa Probate Attorneys
  • Plymouth Meeting Probate Attorneys
  • Plymouth Valley Pa Probate Attorneys
  • Whitemarsh Pa Probate Attorneys

Subscribe For Newsletter

John B. Whalen, Jr., JD., LL.M., is an AV Peer Review Rated Preeminent 5.0 and Avvo Rated 10.0 Superb (obtaining over 95 client reviews and peer endorsements) premier and prestigious Attorney and Counselor at Law. He is featured on Martindale.com, Nolo.com, Avvo.com, Lawyers.com, Justia.com, Lawyers of Distinction, and Linkedin. He has amassed over 60 prestigious professional awards and over 5000 client reviews and endorsements. He provides free initial consultations all seven days, provides home visits, a provides flat fee client structures. He can be reached by email at jw60297@me.com, and by telephone at 1-610-407-0220. He serves all surrounding counties, on all 7 days, from 9:00 AM to 10:00 PM, and on evenings, weekends, and holidays. His main office is located at 1199 Heyward Road Wayne Pa 19087. Mr. Whalen serves, and has served, both individuals and attorneys in the Southeastern Pennsylvania Metropolitan Area (and throughout the country), including Chester County Pa, Delaware County Pa, Lancaster County Pa, Montgomery County Pa, and Philadelphia County Pa. He has served clients in Ambler Pa, in Ardmore Pa, in Aston Pa, in Berwyn Pa, in Blue Bell Pa, in Bridgeport Pa, in Broomall Pa, in Bryn Mawr Pa, in Chadds Ford Pa, in Chesterbrook Pa, in Chester Heights Pa, in Chester Springs Pa, in Coatesville Pa, in Collegeville Pa, in Conshohocken Pa, in Devon Pa, in Downingtown Pa, in Drexel Hill Pa, in Eagleville Pa, in Easttown Pa, in Elkins Park Pa, in Exton Pa, in Frazer Pa, in Great Valley Pa, in Haverford Pa, in Havertown Pa, in Jeffersonville Pa, in Kennett Square Pa, in King of Prussia Pa, in Lansdale Pa, in Limerick Pa, in Linfield Pa, in Linwood Pa, in Lower Merion Pa, in Malvern Pa, in Media Pa, in Narberth Pa, in Newtown Square Pa, in Norristown Pa, in Oaks Pa, in Overbrook Pa, in Paoli Pa, in Parkesburg Pa, in Phoenixville Pa, in Plymouth Meeting Pa, in Pottstown Pa, in Radnor Pa, in Ridley Park Pa, in Rosemont Pa, in St. Davids Pa, in Springfield Pa, in Strafford Pa, in Swarthmore Pa, in Thorndale Pa, in Tredyffrin Pa, in Trooper Pa, in Upper Merion Pa, in Valley Forge Pa, in Villanova Pa, in Wayne Pa, in West Chester Pa, in Westtown Pa, in Whitemarsh Pa, in Willistown Pa, in Wynnewood Pa, and in Yeadon Pa.