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Balancing Act   
"The Balancing Act"
by Frank Meisler
available at: artcnet.com


Estate Tax and Valuation Services
Our firm is prepared to assist you and your attorney in handling estate tax compliance matters including the preparation of business valuations, estate and gift tax returns, and estate income tax returns. If you are the executor or personal representative of an estate, we wanted to make you aware of two very important sections of the federal tax law that should be followed in order to eliminate any personal liability for you regarding a decedent's federal estate, income and gift taxes:

1.       Section 2204(a) of the Internal Revenue Code provides the statutory means via written application for the executor or personal representative of an estate to be discharged from personal liability from any required estate taxes, or "death taxes".    Without this application process and discharge by the Service, the executor could be personally liable for any deficiency in tax thereafter found to be due.

2.       Section 6905(a) of the Internal Revenue Code provides the statutory means also through written application for the executor or personal representative to be discharged from personal liability for federal income and gift taxes that may have been owed at the time of the decedent's death.    Many times, beneficiaries requests for asset distribution has to be balanced and considered with the potential for additional tax liability.

We can prepare the required returns and valuations and can assist you and your attorney in making appropriate applications as outlined above and in post mortem tax planning to balance the various interests of the estate.

Please call the Estate Tax and Valuation Department manager, Lucy Trousdale at 256-767-0740 if you need assistance or have any questions.