Planning - anticipating estate tax or the present reality that there is not likely to be any. The threshold for the federal estate tax was increased in 2010 to $5 million per person. This amount was indexed and increased each year thereafter. By 2018, the exemption had been increased to $5.49 million, then the Trump era tax changes doubled that amount per person to $11.4 million, effective until 2026. Thereafter, unless there is an additional law change, the exemption will fall back to $5.5 million.

Few estates have a total value that, under the 2010 exemption and later, would trigger any estate tax. Those estates that do, however, are required to file a federal estate tax return and deal with the estate tax issues presented. Couples whose total estate may exceed the combined (per person) threshold may use the “portability” feature of the estate tax law, both in its current and future versions. If, for example, the first spouse’s estate is valued under the exemption amount, the unused portion of his/her exemption will be available for use on the surviving spouse’s estate tax return in addition her or his own $5 million exclusion. The principal requirement is that the surviving spouse (or decedent's executor) must file a timely estate tax return (even if no tax is due) and check the portability box.

The gift tax exclusion for charitable gifts are still available on the estate tax return. However, they are more relevant income tax planning. Lifetime charitable gifts may, for example, allow you to dodge capital gains tax on appreciated assets. From an estate planning perspective, you want your trust and/or will to specify any charitable gifts you intend and, for good measure, to instruct your executor or trustee to complete any charitable pledges you may have outstanding at the time of your death. This latter instruction is often omitted in estate plans, but it is important to the client so that her/his charitable intentions are fulfilled.

Retirement accounts most often pass to your designated beneficiary(ies). There are some circumstances where the designation of your trust as the account beneficiary will have advantages and limitations that will require some in-depth discussion and careful planning to qualify the trust as a retirement account beneficiary without triggering income taxation on more than the annual required minimum distributions.

Family LLC - You also may have formed a limited liability company (LLC) for reasons of asset protection, management and/or succession. The number of members in the LLC most often dictates what return forms to file. LLCs have other periodic reporting requirements. It is helpful to create a reporting schedule for your LLC so that you don’t miss a report or deadline that might affect the entity’s standing.

Conservatorships - tax returns are still due without regard for your ability to prepare, sign or file them. These are individual or personal income tax returns that are prepared and filed for the Conservatee by the Conservator. If there is no Conservator appointed. Alternatively, you may use a durable power of attorney that contains the authorization to prepare, sign and file the Principal's tax returns.

Trusts - Revocable trusts do not often file income tax returns. When the Settlor of the trust dies and the trust becomes irrevocable, then it becomes a separate tax entity that will need its own tax ID number and file its own tax returns. These are fiduciary returns: IRS Form 1041 and FTB Form 541. The Settlor may have created other trusts for special purposes, such as charitable and life insurance trusts, that are irrevocable and are their own tax payers. These entities also will file fiduciary income tax returns.

Estate administration - someone has to file the decedent’s final personal income tax returns in most cases. when there is a surviving spouse, she or he can handle this.

Probate - a decedent’s estate that is not settled quickly can become a separate tax entity like a trust requiring a separate tax ID number and fiduciary income tax returns.