Wisconsin Trust Filing Requirements

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Although gift tax returns are usually filed during a person`s lifetime, it is important for the successor personal representative or trustee to determine whether a deceased person has ever filed a gift tax return and to receive copies of those returns. Gift tax and estate tax share a lifetime exclusion or one-time credit ($11.4 million in 2019), so the amount of lifetime exclusion available at death can be reduced by previous gifts. In addition, some states attempt to tax the income of trusts held in another state if a beneficiary of the trust or trustee of the trust is a resident of that state. The trustee needs to know where the beneficiaries of the trust live and receive expert advice on where to file government tax returns. One important figure to keep in mind is the annual donation exclusion, which is $15,000 starting in 2019. This is the amount a person can give to another person in a calendar year without having to file a donation tax return. A donation of this amount is taxable and requires the filing of a gift tax return (Form 709), unless it falls under an exemption. Two notable exceptions to the annual exclusion are educational exclusion and medical exclusion. These exclusions allow an individual to make direct payments for tuition or medical care on behalf of another person to an educational institution or qualified health care provider without using the annual debarment or a single loan. After a person`s death, various legal, personal and financial issues must be settled. In addition to distributing assets to beneficiaries, a number of tax matters must be handled by the deceased`s successor personal representative or trustee. In these cases, it is helpful to work with a lawyer who is experienced in inheritance and tax law. A party acting on behalf of another to manage assets is called a trustee.

In the administration of estates, trustees may include the personal representative named in the deceased`s will (also called an executor) or the successor trustee of a revocable living trust. A trustee must address some or all of the following tax issues: Frozena Law LLC can provide you with the legal assistance you need to liquidate an estate or trust. We help you fully understand the tax requirements that need to be met while guiding you through the estate administration process and ensuring that your loved one`s wishes are properly met. The requirements that a trustee must meet after a person`s death can be complex, and it is important to ensure that all tax returns are filed correctly to avoid potential penalties. Frozena Law LLC can assist you with these tax forms and ensure that all other matters related to the administration of estates and trusts are handled correctly. Contact our office at 262-237-8668. We offer estate administration and tax filing in Kenosha, Pleasant Prairie, Sturtevant, Lake Geneva, Union Grove, Bristol, Racine and Burlington. Although Wisconsin does not currently have an inheritance tax or estate tax (a tax paid by the beneficiary/beneficiary), other states have these types of taxes and deposit thresholds vary. If the testator owns property in a state with an estate tax and the value of the property is high enough, it is possible that a state estate tax return must be filed and taxes must be paid even if no federal estate tax is due.