Trust, Estate & Gift Planning
Trust and estate work spans three separate filings that are often confused: the fiduciary income tax return for income a trust or estate earns, the gift tax return for transfers above the annual exclusion, and the estate tax return for estates above the threshold. Blue Sage prepares all three and coordinates with your attorney.
What we handle
- Form 1041 fiduciary income tax returns
- Form 709 gift tax returns
- Estate tax return coordination, federal and New York
- Beneficiary Schedule K-1 preparation
- Distribution timing and planning
- Final personal returns for a decedent
Who this is for
Trustees, executors, families administering an estate, and individuals making substantial lifetime gifts.
New York has its own estate tax with its own threshold, which is different from the federal one. An estate can be well below the federal threshold and still owe New York estate tax, and the New York rules include a cliff feature that makes planning near the threshold consequential.
Deadlines and rules worth knowing
| Item | What applies |
|---|---|
| Fiduciary income tax | Form 1041, for income the trust or estate earns during administration |
| Gift tax | Form 709, required for gifts above the annual exclusion per recipient, even when no tax is due |
| Estate tax | Separate from income tax. Federal and New York have different thresholds. |
| New York cliff | Estates modestly above the New York threshold can lose the benefit of the exclusion entirely |
| Compressed brackets | Income retained in a trust reaches the top rate at a very low level |
| Final 1040 | The decedent's personal return for the year of death is filed separately from the estate return |
How we work
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Review what exists
We read last year’s return and whatever records you have. Most of what needs fixing is visible quickly.
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Fixed quote in writing
Scope and price before anything starts, counting entities, states, and any cleanup needed.
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File and maintain
Returns prepared and filed, notices answered, and a projection before year end.
Questions
Do I have to file a gift tax return if no tax is due?
Often yes. A return is generally required for gifts to any one person above the annual exclusion amount, even when the lifetime exemption means no tax is payable. Filing also starts the clock on the statute of limitations for that gift, which is a reason to file even where it is arguable.
Does New York have its own estate tax?
Yes, with a threshold separate from the federal one and considerably lower. New York also applies a cliff, meaning an estate somewhat above the threshold can lose the benefit of the exclusion rather than being taxed only on the excess. Planning around that threshold is worth real attention.
Last reviewed 11 September 2026 by Fahadun Nabi, Founder, Blue Sage Tax and Accounting Inc.. General information, not advice for your specific situation.
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