Estates, Trusts & Taxation

Estate planning is an important element of your overall financial plan. Virtually everyone, no matter the size of their estate, should have a well-designed estate plan that will accomplish their individual goals in the event of their incapacity or death.

  • Estate Taxation
  • Trust Taxation
  • Individual Trust Services
  • Trust Department Tax Compliance Service

ESTATE TAXATION

We have Certified Specialists in Estate Planning on staff, offering expertise to address your specific questions and all aspects of your estate planning and tax compliance work. We assist you in resolving such important issues as:

  • Who will your assets transfer to at your death?
  • Are your assets properly titled to carry out the wishes of your estate plan?
  • Does my will accomplish my goals in the disposition of my assets?
  • Who should I select as the executor or executrix of my estate?
  • Have I designated an estate plan that will minimize tax and maximize what is left to my loved ones?
  • Have I minimized probate and administration expenses on my estate?
  • Are the assets of my estate protected from my creditors or the creditors of my heirs?
  • Is my estate plan still adequate in light of changes in estate tax laws, my family status, or growth in the size of my estate?

We evaluate your estate plan to determine if you are maximizing the benefit of estate planning tools:

  • Would a Living Trust work more effectively than your will in providing for a more expedient and less costly settlement of your estate?
  • If married, have you implemented Bypass Trusts to allow you and your spouse to shelter up to the allowable maximum from estate tax?
  • Have you used other trusts to your advantage, for example other irrevocable, Qtip trust or charitable trusts?
  • Could your estate benefit from the application of discounting principles or the use of a Family Limited partnership?
  • Would the use of a trust facilitate your estate plan or assist you in reaching other financial goals?

Estate tax law has seen significant revision in recent years and continues to change through legislated phase-ins and additional new law. Prudent action warrants continuous consulting with your professional advisors to ensure that your existing plan is not outdated and still meets your needs.

TRUST TAXATION

Perhaps somewhat unique for a firm of our size, Alario & Associates, CPA PC maintains a trust tax department, with a dual focus of serving both the needs of our individual clients who have established trusts and also providing services to banks, law offices and trust departments who choose to outsource their increasingly complex tax compliance work.

INDIVIDUAL TRUST SERVICES

We provide consulting and tax preparation services on all types of trusts, including grantor, simple, complex, revocable and irrevocable trusts, charitable trusts, life insurance trusts, and other estate planning trusts. We can assist you with:

  • Guidance on the benefits of a particular trust to your tax situation
  • Trust formation and dissolution
  • Tax return preparation including K-1 reporting for beneficiaries

TRUST DEPARTMENT TAX COMPLIANCE SERVICE

We offer trust compliance services to banks, and trust departments. Our staff has extensive knowledge and experience in dealing with the compliance requirements and unique issues relating to trusts. Our trust department assists fiduciaries with the complex task of fulfilling their tax compliance obligations.

We can relieve you of the burdens associated with trust tax compliance by handling it for you.

Let us be responsible for:

  • Meeting due dates
  • Preparation and liability of interpreting complex tax laws
  • Dealing with the IRS and state taxing authorities

Estate 706 Filing thresholds for 2022

  • Federal - $12,060,000 for single individuals and $24,120,000 for married individuals for 2022.
  • Massachusetts Taxes - Estates over $1,000,000

Death Bed Planning:

  • Make $1,000,000 in gifts to reduce Massachusetts tax
  • Convert IRAs or qualified plans to Roth IRAs

Post-Mortem Planning:

  • Use of disclaimers to reduce estate tax on the second to die

IRA Planning:

  • Beneficiary designation planning, e.g. using trusts as contingent beneficiaries, the avoidance of naming an estate as a beneficiary, naming charities as beneficiaries
  • Set up inherited IRAs in beneficiaries name to preserve deferral

Retirement Benefits Planning (Income Tax):

  • Retirement withdrawal planning, combined with social security
  • 60 day rollover waivers

The use of trusts:

  • Probate avoidance
  • Funding credit shelter trusts
  • Protection for the elderly or special needs individuals

Learn How We Can Help

Traditional Values...Contemporary Service