Like they know that. So those ones you can’t get away with, but some of the other ones in the other space, um, if it’s a unknown location, maybe it’s just where you have family from, you’re going to go visit. Try to see if there’s ways you can turn that into a trip. Some people, they have continuing education and they can do them on different locations. Maybe do a continuing education class in that location. And now you can write off some of the airfare or even just the gas travel expenses you have in getting there solid Trust Attorney Las Vegas today.
Yup. I think that’s, that’s a very good point there. All right, we’re gonna make a little bit of a transition here. So we talked about best practices. Now let’s talk about, um, the standpoint of if someone dies. You know, this is very pertinent to me and my clients. Um, so somebody dies. What is the tax implications? Cause we’ve talked, you know, on the podcast multiple times about what to do from the trust standpoint and or probate, but what does it look like from the tax standpoint and when somebody dies when it comes to Trust Attorney Las Vegas?
Uh, I get a lot of people that come in all the time and they’re panicked. These are people that have filed taxes for years. They’ve seen taxes a bunch of times, but somebody passes away and all of a sudden they’re like, it’s gotta be something crazy and different. Um, I’m telling you what it’s not, is it is filing a final return for that individual. It is critical that I know the date of death cause we put it in and if you might, maybe you don’t have a trusted advisor, they might make a mistake in this space, but the IRS looks for return every year for you until you file one that tells them that, Hey, here’s the date of death and at that point they Mark it in the system that there’s no further return and they’re not going to look for it when you have a final return for your Trust Attorney Las Vegas.
We’re just going to take the tax docs that we got for that individual for the year. We’re going to file a final return. There will be somebody that has to sign off for them somewhere and this is where I go back to Blake again. There should be somebody that already in the trust or the state of the will that’s designated as this individual. They’ll have paperwork that authorizes them to do it. We have them sign on the tax return and we send it in just like a typical returnwhen it comes to your Trust Attorney Las Vegas. It can be electronically filed. The process is simple. I would say the most critical thing is knowing who’s allowed to sign and frankly having that decided beforehand, do that work before it happens because it’s way easier if we already have the docs and I just go get the signature and we’re done. Um, and also that, um, the date of death has to be put in.
Make sure that that gets on the tax return. Again, I don’t, I don’t mind if you don’t use, you meet and you go somewhere else, but I want you to have the right result. Make sure that that date is put in because otherwise you’ll get an a in a further year and all of a sudden you get some IRS notice and you’ll be like, man, this is two years later I thought everything was done and now they’re asking me some questions or maybe some tax document and now I have to answer some more questions and I didn’t know what the answer is and I’m two years removed. File the final return properly and it makes that all go away after your use your Trust Attorney Las Vegas.
Gotcha. Awesome. Now, this is something I see all the time. Clients want to get around having to set up a trust or anything when they transition assets to to their kids. And so they’ll say, Oh, I’m just going to give the house to them right now cause I’m sick. I know I’m going to die in the next month. Why is that a bad idea from a tax standpoint,
again, not in the realm that I actually filed these, but you can’t just move money to your children. There is what they call a gift tax and there’s a limit on it and the limit is low and people do this all the time. They’re trying to give away hundreds of thousands. They should only be able to give away like tens of thousands. So when you’re giving away large assets and they’re like, Oh, this is simple, I just moved it, now I’m safe. You’re not safe. At some point when the IRS realizes that it moved from you to the other individual, there’s a gift tax and most of the time it’s found after the fact and so they’re going to charge penalties and interest on it. So now that’s one piece of estate, state, whatever it was that you were trying to pass on to your children to give them a better life or give them some type of advantage is now going to cost them a lot of money in taxes with your Trust Attorney Las Vegas.
In fact, it might cost them more than what they got it. It really can turn into a problem if you don’t do it properly. Anybody that has any decent amount of wealth. Now if this is grandma that just lives at the house with me and she just has a bank account and there’s not very much left. Yes of course she doesn’t need to worry about setting up a trust. But if the minimum thing you had was a house and you have some equity in your house, that alone, I would strongly recommend getting a trust in place and having a set of properly. Do not try to transition that to yourself. It is a tax headache.
Well and then can you talk about the capital gains implications of that? So let’s say we don’t have to worry about the gift tax cause they, they don’t get caught or anything. But just from a pure capital gains standpoint, what does that look like if they give it away before they diverse is having the kids get it after they die from your Trust Attorney Las Vegas.