A trust administration attorney is invaluable if you have complicated finances, including multiple beneficiaries and trusts. They can handle conflicts of interest, prepare tax returns, and resolve conflicts of interest. They can also help you set up living trusts. Read on to learn more about why you should hire a trust administration attorney.
Creating a living trust
The process of estate planning can be complicated. Whether you need to prepare a will, a trust or another document, the advice of an experienced attorney can make the process simpler and more effective. A trust administration attorney will explain the laws of estate planning and clarify any issues you are not clear about.
Filing tax returns
The first thing that you’ll need to do if you’re filing tax returns is to secure a new EIN for your business. This is necessary because you’ll need to report your earnings under the new EIN and file the taxes that are due. In addition, you’ll need to pay the estate tax, which is a tax that occurs when an estate’s assets pass from the deceased to the beneficiaries. However, this tax only applies if the estate is large enough.
Resolving conflicts of interest
As a trustee, it is important that you have a clear understanding of your fiduciary duties and the law on conflicts of interest. If you have any questions or concerns, do not hesitate to contact an attorney who can help. There are several ways to resolve conflict situations and avoid any potential lawsuits.
Filing fiduciary income tax returns
If you are a fiduciary and your clients have estates, you should consider filing a fiduciary income tax return. The form is called the DR-0105. As a fiduciary, you are responsible for dividing the taxable income of an estate among the beneficiaries. The IRS has guidelines for calculating your tax liability.
Estate tax law
An estate tax law attorney can help you understand your state’s tax laws and prepare the appropriate paperwork to minimize estate taxes. The tax exemption amount for the state of New York is currently $5,930,000, which will increase every year to keep pace with inflation. If the value of your estate is greater than this amount, you will need to file an estate tax return. The state will consider the gross estate and non-excluded gifts to determine the amount of tax to be paid.
Cost of trust administration
The cost of trust administration can range greatly depending on the size and complexity of the estate. Some estate planning attorneys charge a flat fee, while others charge as much as 2% of the total value of the trust’s assets. In addition, there may be ongoing expenses, such as paying a Trustee’s fee.