A trust can sell appreciated assets and distribute the cash without automatically shifting the capital gain to the beneficiary. Learn when capital gains stay taxable to the trust, when they enter distributable net income, and what trustees and beneficiaries should review before a distribution.

Some income remains taxable even after the person who earned it dies. Learn how IRD rules apply to inherited IRAs, unpaid wages, business receivables, installment sales, estate Form 1041 reporting, beneficiaries, and the Section 691(c) deduction.

Inherited property often receives a new tax basis at death, but the result depends on ownership, fair market value, community property, joint tenancy, rental use, and important exceptions. Learn how to establish and document basis before the property is sold.

California Proposition 19 can limit property tax reassessment when a child inherits a parent's principal residence, but residence, filing, and value cap rules apply. The current adjustment is $1,044,586 for transfers through February 15, 2027.

A missed Form 706 portability deadline does not always eliminate a deceased spouse's unused exclusion. Learn when Rev. Proc. 2022-32 provides five year relief and when a private letter ruling may still be available.

Trust distributions are not automatically taxable or tax free. Learn how DNI, principal, capital gains, Schedule K-1, the 65 day election, and property distributions determine who pays the tax.

A Section 645 election can treat a qualified revocable trust as part of a decedent's estate for income tax purposes. Learn about Form 8855, estate fiscal years, EIN requirements, filing deadlines, and what happens when the election ends.

Executors and beneficiaries can face personal exposure for unpaid federal estate tax in certain circumstances. The Estate of Spenlinhauer case shows how premature distributions, late Form 706 filing, valuation problems, and transferee liability can combine into substantial tax consequences.

California estate and trust taxation depends on more than where a trust was created. Learn how Form 541, decedent residency, trustees, noncontingent beneficiaries, California source income, Schedule G, and beneficiary distributions determine California tax.