ACPEN: Estates & Trusts: Executor Duties and Tax Responsibilities in Estate Administration

Overview

This course reviews the legal, fiduciary, and federal tax responsibilities of an executor or personal representative during the administration of a decedent’s estate. Participants will examine the executor’s duties from initial appointment through final distribution, including identifying and managing estate assets, settling creditor claims, and administering distributions to beneficiaries. The course also reviews filing requirements for the decedent’s final Form 1040, the estate’s Form 1041, and the federal estate tax return, Form 706, along with the treatment of income in respect of a decedent (IRD) and basis adjustments. Participants will also examine IRS procedural requirements, including obtaining an EIN for the estate, responding to IRS notices, and recognizing potential audit risks. Emphasis is placed on practical estate administration procedures, executor liability considerations, and maintaining proper estate accounting records and documentation to support compliance with federal tax requirements.

*Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to terri.storer@acpen.com

Highlights

Legal and fiduciary responsibilities of the executor or personal representative
Overview of the estate administration process from appointment through final distribution
Filing requirements for Form 1040, Form 1041, and Form 706
Income in respect of a decedent (IRD) and basis adjustments
Estate asset identification, valuation, and management
Creditor claims, debt settlement, and distribution procedures
Obtaining an EIN for the estate and IRS notice procedures
IRS audit risks related to estate administration
Executor liability considerations and risk management
Estate accounting records, documentation, and communication with beneficiaries

Prerequisites

None

Designed For

CPAs, EAs, attorneys, and financial professionals involved in estate administration

Objectives

At the end of this course, you will be able to-
Identify the legal and fiduciary duties of an executor under federal and state law.
Determine filing requirements for Form 1040, Form 1041, and Form 706.
Apply rules related to income in respect of a decedent (IRD) and basis adjustments.
Analyze procedures for estate asset management, debt settlement, and beneficiary distributions.
Navigate IRS procedures including EIN application, notice requirements, and potential audit risks.
Evaluate executor liability and methods for minimizing personal exposure.
Implement appropriate estate accounting, recordkeeping, and communication practices during estate administration.