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Estate, trust and gift tax returns for Indianapolis families and executors
When someone dies, the tax work doesn't stop with them. There's a final individual return, often an estate income tax return, and sometimes a gift or estate tax filing. We handle the tax side alongside the family's attorney so the executor isn't doing it alone.
Final returns for someone who passed
The person's last Form 1040 and Indiana IT-40 cover January 1 through the date of death, and they're due on the normal April deadline the following year. A surviving spouse can usually still file jointly for that year. Income that arrives after death, such as a final paycheck or dividends paid to the estate, generally goes on the estate's return instead.
If there are earlier years that were never filed, we pull the IRS transcripts and file those too, so the executor can close the estate without an open tax question.
Estate and trust income tax: Form 1041
While an estate is being settled, its accounts keep earning interest, dividends, rent or gains from sales. If that income reaches $600 or more in a year, the estate files its own Form 1041. Trusts that earn income file a 1041 every year.
Why the 1041 needs a plan
Estates and trusts hit the top federal rate at a far lower income than people do. Income passed out to beneficiaries is usually taxed on their returns instead, through a K-1. Deciding when to distribute, and choosing the estate's tax year, can change the total tax paid by the family.
Gift and estate tax returns: Forms 709 and 706
| Return | When it's needed | 2026 figure |
|---|---|---|
| Form 709, gift tax | You gave one person more than the annual exclusion in a year, or split gifts with your spouse | $19,000 per recipient |
| Form 706, estate tax | The estate is above the federal exemption, or a surviving spouse wants to keep the unused exemption | $15 million per person |
Filing a 709 rarely means owing tax. It records the gift against your lifetime exemption. The 706 matters for more families than the dollar figure suggests: a surviving spouse can only keep the deceased spouse's unused exemption (called portability) if a 706 is filed.
What heirs should know
- No Indiana inheritance taxIndiana repealed it for deaths after 2012, and it has no estate tax either.
- Stepped-up basisInherited stock or a house generally takes its value on the date of death as its cost, so selling soon after often produces little taxable gain.
- Inherited IRAsMost non-spouse beneficiaries must empty an inherited IRA within 10 years. When you take it out changes the tax.
- Keep the appraisalThe date-of-death value is your cost basis. Store the appraisal or statement with your own records.
What to bring
Executor questions
Yes, if it will open a bank account or file a Form 1041. The estate's EIN replaces the person's Social Security number on income earned after death. We can request it for you.
Almost certainly not. The 2026 federal exemption is $15 million per person, and Indiana has no estate or inheritance tax. Income tax on the final 1040 and the 1041 is the usual concern.
Yes. Documents can come by mail or email, and returns can be signed electronically. We coordinate with the attorney handling probate here.