Trusts are taxed at the highest marginal rate at just $15,200 of income in 2026. That single fact explains why most trust returns prepared by general-practice CPAs leave money on the table—they apply individual tax logic to a fiduciary return, and the result is a tax bill that is far higher than it needs to be.
At Milestone, fiduciary tax is a core specialty. We work with trustees, executors, estate attorneys, and families navigating trust and estate administration to ensure every return is accurate, every distribution is optimized, and every opportunity under current law—including the $15 million estate and gift tax exemption under the One Big Beautiful Bill Act—is fully utilized.
We ensure your trust return is filed correctly and on time. Our estate tax planning services are available year-round, not just during tax season. We help families plan for their legacy.
Most CPA firms treat tax prep, bookkeeping, and advisory as separate engagements with separate teams. We integrate them into a unified financial strategy so that your tax planning informs your business decisions, your accounting informs your tax planning, and nothing falls through the cracks.
Simple trusts, complex trusts, grantor trusts, qualified disability trusts, and estates. We calculate distributable net income accurately, optimize the timing and character of distributions.
For estates exceeding the $15 million federal exemption (2026). We prepare the return, value assets, apply available deductions and credits, and coordinate with the estate attorney to elect portability of any unused exemption for the surviving spouse.
For gifts exceeding the $19,000 annual exclusion ($38,000 for married couples splitting gifts) or gifts that use lifetime exemption. We track cumulative lifetime gift usage and advise on structuring gifts to maximize the exemption.
Our FAQ section answers your top inquiries about trust and estate tax preparation services.
Most trusts with income, deductions, or distributable net income exceeding $600 must file Form 1041. Grantor trusts may report income on the grantor’s personal return instead. We determine which filing method applies and handle the paperwork.
The federal estate and gift tax exemption is $15 million per person in 2026 under the One Big Beautiful Bill Act. For married couples, portability allows the surviving spouse to use any unused exemption from the first spouse to die—potentially sheltering $30 million from estate tax.
You may need to file a final individual income tax return (Form 1040), an estate income tax return (Form 1041), and possibly an estate tax return (Form 706) if the estate exceeds the exemption. We handle all three and coordinate with the estate attorney managing probate.
It depends on the beneficiaries’ individual tax brackets relative to the trust’s compressed brackets, the trust instrument’s distribution provisions, and the family’s broader financial goals. We model both scenarios and recommend the approach that minimizes total tax.
Whether you’re a trustee navigating fiduciary duties or a family planning for generational wealth transfer, our team offers trusted tax guidance and accounting support.
