Estate & Trust Tax Preparation

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Navigating taxes on trusts and estates can often be a difficult task and tax experts are needed to help you understand the different taxation issues that can arise. Epstein Schneider, PLC works closely with attorneys, and investment advisors so that we are able to develop trust tax plans and estate tax plans that meet the individual needs of every client. Epstein Schneider, PLC will use our 30 plus years of experience working with trust and estate taxes to provide you with the best service possible.

Types Of Trusts

All trusts fall under two categories, revocable and irrevocable trusts. These trusts are treated differently by the IRS and have different taxations. Epstein Schneider, PLC accountants will help you discern the differences in your trusts and guide you in the taxation processes for each type.

Revocable Trusts

Revocable trusts, also known as Grantor trusts, pay no income taxes. When assets inside the trust earn income, the earned income flows back to you. These trusts are private and are mainly setup to avoid probate proceedings. Revocable trusts provide you with asset protection to loved ones after your death but do not provide asset protection during your lifetime. Revocable trusts are set up during a person’s lifetime and can be changed while the grantor is still alive. Upon the grantor’s death the trust becomes an irrevocable trust and is subject to taxation.

Irrevocable Trusts

When you setup an irrevocable trust you must be aware of the fact there will be income taxes to pay. Irrevocable trusts require a new tax identification number when it is established and requires the trustee to report the trusts income on a separate income tax return. Many times, irrevocable trusts have no taxable income and even if an irrevocable trust does have income, since the tax rates are quite high, trustees often opt to distribute income to the beneficiaries of the trust. In this way the trust itself will pay no income tax but the recipient of that income must show it on their individual tax return where it will be taxed at their personal income tax rate.


Our experienced accountants are here to help you with all of your trust and estate tax needs. The services we provide include but are not limited to:

  • Living trust
  • Death trust
  • Trust for minors
  • Medicaid trust
  • Special needs trust
  • Spousal trust
  • Charitable trust
  • Asset protection trust
  • Crummey trust
  • Gift tax returns and strategies
  • Business succession planning
  • Trust administration
  • Trust income tax returns
  • Estate Tax returns
  • Ensure your assets are allocated to beneficiaries
  • Review of your trust tax situation

Estate Tax

Arizona is one of 38 states with no estate taxes. If you live in one of the other 12 states requiring estate tax this is a tax placed on a person’s assets after death. Federal estate tax generally applies to people with assets over $11.5 million and estate tax rates range from 18-to-40 percent.

Our trained accountants have the experience you need to help you work through any issues with your trust and estate tax situation. Call us at 480-483-3024 and request a free consultation to learn more.

How can we help you?

Epstein Schneider, PLC offers you innovative and comprehensive solutions for tax, accounting and financing matters. We are just a click or a phone call away.