WA Estate Filing Q's?

[dude7707]

WA T/P, surviving spouse -  DOD - 12.1.15 - Est FMV of Estate $750k - Property all in WA State

What are due dates for these returns given the limited facts above?

1.  Final 1040 - Due 4.15.16.

2.  1st Estate Income Tax Return 1041 using CY 12.31.15 - Due 4.15.16 - Y?

        a.. T/P when obtaining EIN used CY.....can this be changed if done within next 30 days?

        b.  Need to file - If  the estate generates more than $600 in annual gross income - Y?.

3.  Estate Tax Return 706 - Due 9 months after DOD. - Not Required since Est FMV of Estate < Federal threshold - $5,430m or WA State - $2,034m correct?

[Gail in Virginia]

First item: yes, the final 1040 is due 4/15/16.  The Fiduciary Return, Form 1041, the return is due 3 and 1/2 months after the end of the year for the taxpayer.  The year end is established the first time a return is filed.  So regardless of what was done when the EIN was applied for, if you want the year end to be 11/30, you can file the first 1041 by March 15, 2017 showing a fiscal year of 12/1/15 through 11/30/16, and you should be fine.

As far as the estate return goes, you are correct that a return is not required on an estate that small but there might be reasons to file one anyway to make certain elections about the estate.

I am not an estate expert, so if someone else wants to chime in with additional information, please do.

 

[Lion EA]

I seldom do estate returns, but one big reason to file anyway is to elect "portability" by filing a return to move the deceased's unused exemption to the surviving spouse.  She/he might win the lottery or the house or other asset might skyrocket in value during the rest of her/his lifetime.  It's a CYA so her/his heirs won't sue you for not protecting their inheritance from estate taxes down the road.  At least put in writing that you discussed the benefits of filing and have her sign it for your files.