This course offers a practical introduction to estates and trusts by reviewing their fundamental differences and how these entities are established. Participants will explore the types of trusts, including a summary of special elections. Income tax implications for both estates and trusts will be discussed, along with the specific filing requirements of Form 1041, ensuring you're confident in applying these concepts in real-world tax scenarios.
By the end of this course, you will be able to:
- Differentiate between the key characteristics of estates and trusts.
- Identify the steps necessary to establish an estate or a trust.
- Recognize various types of trusts and their primary purposes.
- Summarize special elections available to trusts under current tax law.
- Explain the income tax implications associated with estates and trusts.
- Determine the filing requirements for IRS Form 1041.
- Define and apply the acronyms FAI (Fiduciary Accounting Income), DNI (Distributable Net Income), and IDD (Income Distribution Deduction) in tax contexts.
