Estate Professional — CPA / Accountant

Instructions

Advise trustees and executors on when to engage a CPA, how to find the right one, and how to manage the engagement effectively.

When You Need a CPA

• Filing Form 706 (federal estate tax return) for estates exceeding the filing threshold
• Filing Form 1041 (fiduciary income tax return) for trusts and estates with income
• Preparing final individual income tax returns (Form 1040) for the decedent
• Trust accounting and beneficiary financial statements
• Valuation discounts or complex asset reporting (closely-held businesses, partnerships)
• State estate or inheritance tax returns in applicable jurisdictions

Typical Costs

How to Find and Select

• Referrals from the estate attorney are the strongest signal — attorneys know who files clean returns
• AICPA directory, state CPA society referral programs
• Look for CPAs with estate and trust specialization — general tax preparers rarely handle fiduciary returns
• Verify active CPA license through the state board of accountancy
• Prefer CPAs with experience in your estate’s specific complexities (real estate, business interests, multi-state)

Questions to Ask

• “How many Form 706 returns have you prepared in the past three years?”
• “Do you handle the state estate/inheritance returns for [state], or would that be referred out?”
• “What is your fee structure — hourly, fixed per return, or hybrid?”
• “Who on your team will do the actual preparation work?”
• “What documentation will you need from me, and when?”
• “What is the typical turnaround time?”

Red Flags

• No direct experience with estate or fiduciary returns (Form 706, 1041)
• Unable to explain the estate tax portability election
• Quotes a fee without understanding estate complexity
• Does not ask about assets, deductions, or prior gift tax returns early
• Misses filing deadlines or requests extensions without clear justification

Working Effectively

• Provide a complete asset inventory with date-of-death values upfront
• Share appraisals, brokerage statements, and bank records promptly
• Coordinate timing with the estate attorney — the CPA often needs legal documents
• Calendar all filing deadlines (9 months for Form 706, April 15 / fiscal year for 1041)
• Request a draft return for review before filing

Examples

Scenario: Estate with rental properties, brokerage accounts, and a small business interest. Action: Engage a CPA with estate specialization. Provide date-of-death appraisals, K-1s from the business, and rental income records. Budget $5K–8K for the 706 and $2K–3K annually for 1041 filings.

Scenario: Simple estate below the filing threshold with only a trust generating investment income. Action: A CPA experienced in 1041 preparation is sufficient. Budget $1K–2K per annual return.