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Estate Basis Consistency Rules for Fiduciaries: Navigating Reporting Requirements and Distribution Strategies

Avoiding Penalties, Determining Impact of Disclosure Rules on Estate and Beneficiaries, Making Post-Mortem Basis Adjustments

Recording of a 90-minute CLE/CPE video webinar with Q&A

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This program is included with the Strafford CPE+ Pass. Click for more information.
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Conducted on Thursday, October 27, 2022

Recorded event now available

or call 1-800-926-7926

This CLE/CPE course will provide estate planners and advisers to trusts and estates with a practical guide to estate basis consistency reporting requirements as they impact trustees and fiduciaries. The panel will explain the IRS pronouncements on coordinating basis reporting with the filing of the estate tax return and valuations reported on Form 8971, and will offer strategies to help fiduciaries avoid adverse tax consequences in estate distributions.


The basis consistency initiatives present challenges to tax compliance advisers, fiduciaries, and estate counsel. The rules create filing obligations for executors of taxable estates but will also impact distribution decisions and litigation strategies. Estate planners must grasp the wide-ranging impact of these provisions to avoid unnecessary taxes and penalties.

IRC Section 1014(f) and 6035 set the guidelines for the basis consistency regime. IRC Section 1014(f) mandates that an asset's reported estate tax value and the basis of the asset when acquired by the estate beneficiary must be consistent. IRC 6035 requires estate executors to identify the value of property reported on the estate tax return to both the IRS and the estate beneficiaries.

The requirement to furnish basis information to all beneficiaries creates a substantial burden on fiduciaries. Additionally, the mandate to match basis on assets between Form 706 and the beneficiaries' tax returns complicates determining and making distributions. Executors will have to balance the tax situations of the beneficiaries with the needs of the estate in distributing property.

Listen as our experienced panel provides a comprehensive and practical guide to the estate basis consistency rules as they impact executors and estate planners.



  1. Section 1014 basis consistency rules
    1. Estates subject to basis consistency
    2. Property subject to basis rule
    3. Final value determination methods
    4. Zero-basis rule and other tax consequences due to omission or non-reporting
  2. Section 6035 reporting requirements
  3. Supplemental reporting requirements
  4. Distribution considerations and strategies


The panel will review these and other relevant topics:

  • Reporting property on Form 8971
  • Coping with scenarios in which the executor does not wish to disclose asset basis values to a particular beneficiary
  • Rules on post-mortem basis adjustments to estate assets
  • Penalties for failure to disclose all assets on Form 8971 and Schedule A
  • How fiduciaries should remedy reporting mistakes or failures
  • Distribution concerns and strategies under the basis consistency reporting rules


Gaymon, Sarah
Sarah N. Gaymon, CPA

Associate Director of Tax Services
Berkowitz Pollack Brant

Ms. Gaymon is an Associate Director of Tax Services at Berkowitz Pollack Brant Advisors + CPAs located in the West Palm...  |  Read More

Jannol, Neal
Neal B. Jannol

Law Offices of Neal B. Jannol

Mr. Jannol is a sole practitioner in Los Angeles at the Law Offices of Neal B. Jannol. He has been an attorney for more...  |  Read More

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Strafford will process CLE credit for one person on each recording. CPE credit is not available on recordings. All formats include course handouts.

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