Dunham specializes in assisting estate executors to identify the most appropriate tax filings for their needs. Our services extend to executors needing to submit Form 1041 (U.S. Income Tax Return for Estates and Trusts) for declaring the estate’s earnings during a tax year, as well as to those requiring Form 706 (U.S. Estate and Generation-Skipping Transfer Tax Return) for reporting the deceased’s estate value and determining any owed federal estate tax.

Estate (and Trusts) are generally required to file tax returns when their gross income exceeds $600. The top tax bracket for Trusts and Estates starts at only $15,200 in 2024. Additionally, estates are required to file an estate tax return when the gross estate, adjusted for taxable gifts exceeds the exclusion ($13.61M in 2024). However, many states including NY have much lower exclusion.

With the Federal estate exclusion due to sunset on December 31, 2025, it is possible that the exclusion will fall to just about $5 million per person on January 1, 2026. Dunham can help you plan for these changes, including filing for a portability election.

Only about 7,100 estate tax returns are filed annually, thus many firms do not have substantial experience in this niche. Dunham advises executors to utilize a CPA with a significant track record to minimize errors and ensure favorable individual rates wherever feasible.