We Specialize in working with executors and their attorneys in settling an estate. Identifying, protecting and reporting assets are among the key services we provide.

Gary R. St. Pierre, CPAs, has developed a process to guide the executor through the financial issues of settling an estate. An estate holding significant assets often includes undervalued or hidden assets that can only be discovered through an organized and planned investigative procedure.

We review the executor's progress and answer any new questions? At this point, if not earlier, the executor will be advised as to whether the estate is required to complete the United States Estate (and Generation-Skipping Transfer) Tax Return (IRS Form 706).

Click here to learn when a return must be filed

We thoroughly investigate all assets before preparing the tax return. This includes reviewing all available data, checking to be certain it is correct. We review and inspect all assets with the executor in an effort to discover any "hidden" or overlooked assets. This search involves a review of the asset data as well as a review of legal documents and past tax returns. This step often leads to the discovery of assets previously unknown to the heirs.

Click here for a case study. This illustrates how important this step was in discovering hundreds of thousands of dollars for one estate.

Assets can be reported in one of two ways: Date of Death value is required unless an alternative (six months after death) valuation would provide a more favorable tax situation. Competent, professional appraisers may be necessary to perform the valuation of assets. Based on these values, we then determine which valuation date is best suited to the estate.

Click here for a case study that illustrates how this important step revealed $1,000,000 in unknown assets for one estate. In addition, this process saved $100,000 to $200,000 in income tax liability.

We review all known information with the executor to ensure we have included all assets and debts, funeral expenses, etc. Upon the completion of the review process, we will have all data necessary to prepare the return.

We will guide the executor through the many decisions related to the return preparation including:

• Selection of Date of Death vs. Alternative Valuation Date
  
• Special Use Valuations
  
• Determining the proper allocation of income and expenses
  
• What items apply to the marital deduction
  
• Family Trust
  
• Marital Trust
  
• Q-TIP Election
  
• Other tax decisions
  
• Final income tax return of the decedent
  

We will review the completed return in detail with the executor to ensure that the correct decisions have been made and that all data is correct.

Until the estate is accepted by the IRS via a closing letter, the estate continues to earn income that must be reported annually. We will prepare all required returns. If the IRS makes any tax return-related inquiries, we will respond immediately, as we routinely acquire the necessary Power of Attorney from the Executor ahead of time, just so we can avoid any delays in answering IRS inquiries on behalf of the estate.

We will work with the executor to ensure that the Closing Letter from the IRS is received in a timely manner.