Understanding Basis of Inherited Property and Multiple Tax Challenges

It’s no easy job – understand the myriad of reporting and tax challenges faced by an executor.

The executor’s job is no easy task. An executor is responsible for probating a decedent’s will, inventorying a decedent’s assets, identifying the estate beneficiaries and distributing the assets of the estate. In today’s world, in which people own assets across multiple institutions and the click of a button can transfer such assets across continents, estate administration is more time-consuming and complex than ever. In addition, the executor must carefully consider the income tax consequences of the administration and distribution of the estate, and the new basis consistency and reporting requirements add another layer of complexity to the task. This topic will provide an overview of the estate administration process, focusing on the new basis consistency rules, the reports and forms the executor must file and the rules that must be followed. Special attention will be given to the income tax considerations relevant to estate administration.