Estate & Trust Tax Returns (Form 1041)
If you’re the executor of an estate or the trustee of a trust, the tax filings are on you — and the rules are not the same as a regular 1040. At RAMTAXES, we prepare Form 1041 fiduciary income tax returns for estates and trusts, and we guide executors, trustees, and families through every step.
Led by Rick Ramos, RAMTAXES is a 100% virtual firm serving New Jersey, New York City, and Long Island. Our team of CPAs and IRS Enrolled Agents handles your taxes and advisory. We meet by video or phone, and documents are shared securely through our client portal. No office visit needed.
Who has to file Form 1041?
- An estate with gross income of $600 or more for the year
- A trust with any taxable income, or gross income of $600 or more
- Any estate or trust with a nonresident alien beneficiary
Why trust tax brackets matter
Trusts and estates reach the top 37% federal rate at very low income — above $16,000 of taxable income in 2026 — and the 3.8% net investment income tax starts at the same level. Income distributed to beneficiaries is generally taxed to them instead, usually at lower rates, and reported on Schedule K-1.
Deciding what to distribute, and when, is one of the most valuable parts of the job. Distributions made within 65 days after year-end can even be treated as made in the prior year.
New Jersey and New York
- New Jersey: New Jersey no longer has an estate tax — it was repealed for deaths on or after January 1, 2018. It still has an inheritance tax on transfers to certain beneficiaries, such as siblings and non-relatives. Spouses, children, and grandchildren are generally exempt. New Jersey also has its own fiduciary return, Form NJ-1041, generally required when gross income is over $1,000.
- New York: New York has its own estate tax, and its own fiduciary income tax return where applicable.
- Federal: The federal estate tax exclusion is $15 million per person for 2026. We coordinate with your estate attorney on estate tax matters — we handle the income tax returns; your attorney handles the estate plan and probate.
What we handle
- Form 1041 federal fiduciary income tax returns, for each year the estate or trust is open
- Form NJ-1041 and New York fiduciary returns where applicable
- The decedent’s final individual return (Form 1040)
- Beneficiary Schedule K-1s and distribution planning
- Basis records for inherited assets, which generally receive a step-up to fair market value at death
- Guidance for executors and trustees on their tax duties — what to file, when, and what the deadlines are
Help for families after a parent passes
Losing a parent is hard enough without sorting through tax forms. A lot of the estate work we do starts exactly there — someone’s parent has died, and the family needs someone to fix the estate paperwork. We take the time to explain what’s needed, gather the right documents, and handle the filings, so you can focus on your family.
Frequently asked questions
Does every trust need to file a tax return?
No. Most grantor trusts — including many revocable living trusts during the grantor’s life — report income on the grantor’s return. Non-grantor trusts generally file Form 1041 if they have any taxable income or gross income of $600 or more.
Who pays the tax on trust income?
The trust pays tax on income it keeps. Income distributed to beneficiaries is generally taxed to them, as reported on their Schedule K-1.
Is there still a New Jersey estate tax?
No, it was repealed for deaths on or after January 1, 2018. New Jersey’s inheritance tax still applies to transfers to certain beneficiaries.
What’s the cost basis of inherited property?
Generally its fair market value on the date of death, which can eliminate gain that built up during the decedent’s life. We keep the basis records so the numbers are right when assets are sold.
Talk to us
Reach out to the RAMTAXES team and we’ll take it from there — with care, clarity, and attention to detail. Prefer to talk? Call Rick Ramos and the team at (201) 530-0372.
This page is for general information and is not tax, legal, or financial advice for your specific situation. Tax law changes frequently; contact us to discuss your circumstances.