Estate Basis Consistency Rules Create Uncertainty for Executors and Beneficiaries

Richard L. Russell, JD, CPA, and Richard L. Russell Jr., JD, CPA

Over the next 20 to 30 years, the United States is expected to experience one of the largest transfers of wealth in modern world history (Andrew Osterland, “Advisors Brace $30 Trillion ‘Great Wealth Transfer,’” CNBC.com, June 16, 2016, https://cnb.cx/2HmTYXU). In fact, various estimates project that U.S. baby boomers will transfer over $30 trillion in assets during this period. CPAs, as well as attorneys with gift- and estate-related practices, are poised to experience a substantial increase in client volume. Advisors should be aware, however, of recent legislative changes regarding estate reporting requirements. These changes will affect how executors compile reports with the IRS regarding both decedents and their heirs, beginning July 31, 2015.