US Trust Law: Executors given more time to manage estates

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To fulfill their new obligation, executors of US estates have been given more time to report the beneficiary’s interest for each individual’s property in the estate.
One of an Executors requirements is to provide a list of all Beneficiaries of the estate, along with the value of each property or interest in property received by the individual Beneficiary. This requirement was introduced by the IRS on July 31st of this year. The reason for the introduction of the new law, which is part of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, is to harmonise the basic reporting rules. This will ensure that the basis of the property collected from the departure cannot exceed the value of the property as reported on the statement, where the property’s value had not been finally determined for federal estate tax purposes at that point. The new law requires these reports be submitted within 30 days of filing the estate tax refund.

Since the IRS plans to issue further guidance on consistent basis reporting, issued a circular postponing the reporting date until February 29th in 2016. As the IRS is planning to issue new forms and guidance, they are instructing Executors of wills and others that are required to supply statements under the new law, not to do so yet.