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1 Μαΐ 2024 · A Sec. 645 election can streamline tax reporting and offer other tax advantages when a client with a living revocable trust dies. Read about the requirements for making a Sec. 645 election, the tax benefits of making the election, and how and when to make the election.
Section 645 provides for an election to treat a trust as part of the decedent’s probate estate for income tax purposes, if certain conditions are satisfied.
Section 645 is often used to combine a trust with an estate as a single entity for tax purposes. Here is how it works.
19 Αυγ 2003 · The election is currently made on a statement attached to the initial Form 1041 of the estate, if there is an executor, and, if not, to the Form 1041 filed for the first tax year of the QRT taking into account the trustee’s election to treat the trust as an estate under Code §645.
22 Μαρ 2019 · Form 8855 is used to make a section 645 election, which election allows a qualified revocable trust to be treated and taxed (for income tax purposes) as part of its related estate during the election period.
14 Αυγ 2023 · A Section 645 election allows the executor or personal representative of an estate and the trustee of a trust to elect to treat the estate and the trust as one for tax purposes. Generally, estates may elect a fiscal year-end or a calendar year-end, whereas trusts default to a calendar year-end.
Despite the estate and trust administration processes often going hand in hand (and often involving the same fiduciary), the estate and related trust are, absent an election under Internal Revenue Code section 04 645 ("Section 645"), subject to disparate tax rules that are beneficial to the estate, but disadvantageous to the trust. As addressed ...
