A Different Degree of Wealth

Filing Final Tax Returns for the Deceased

When a family member passes away, there are many decisions that need to be made and many emotions to handle. The last thing anyone thinks about is taxes.

Unfortunately, even the deceased can’t escape taxation. If the departed family member earned taxable income during the year in which they died, then federal taxes may be owed. An executor or a survivor must, therefore, file a final federal income tax return (Form 1040).1

Similarly, if the deceased individual had a sizable estate or assets that might generate income in the future, the estate may owe taxes. Federal estate tax forms pertaining to the decedent’s estate may need to be filed (Form 1041, Form 706).1

The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult a professional with tax expertise if you find yourself in this situation.

Income Taxes
The Internal Revenue Service generally gives you until April 15 of the year following the taxpayer’s death to file a final 1040 form. If the deceased was married, a surviving spouse has the option to file a final joint federal tax return for the last year in which the deceased lived.2

If you file the return online, the IRS provides instructions on all of this. If you are filing a paper return, you must write “Deceased,” the decedent’s name, and the date of death at the top of the 1040 form. An appointed personal representative and/or surviving spouse must sign this return per IRS guidelines. If a refund is due, you may need to file a Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer).2,3

Estate Taxes
If an estate is large enough, Form 706 (the United States Estate Tax Return) is due to the IRS within nine months of the death of the deceased, with a 6-month extension permitted. The individual federal estate tax exemption is $11.7 million for 2021, so an estate smaller than $11.7 million may not be faced with estate taxes unless the deceased individual made substantial monetary gifts before their passing.4,5

When the decedent’s estate has an executor or administrator (in IRS terminology, an “appointed personal representative”), they must sign the return for the decedent. For a joint return, the spouse must also sign. Alternately, a survivor of the deceased can file the return.2

If an estate generates more than $600 in gross yearly income within 12 months of that taxpayer’s death, it will also be necessary to file Form 1041 (U.S. Income Tax Return for Estates and Trusts), usually by April 15 of the year after the year in which the individual died. Should 100% of the income-generating assets of the deceased be exempt from probate, the need to file Form 1041 is removed. Estates required to file Form 1041 should consult a tax professional.1

Lastly, there are some cases where expenses paid before death can be deductible. Under certain circumstances, part of the cost of treating a final illness may be deducted on the deceased’s final federal tax return.1

You Are Not Alone
A death in the family can take a heavy toll. In the event of such a tragedy, the last thing you may want to do is deal with the related financial issues. Contact us – we are here to help.

Have a great weekend!

Source: FMG Suite

Tax Season

Tax season is here. We often get questions about filing taxes and paperwork, so we wanted to provide some guidance to consider in preparing your documents to provide to your CPA.

* Please be very careful filing before the end of March as all information may not have been received. *

  • April 18, 2022: Individual Tax Returns Due for Tax Year 2022.

*Please note that corrected 1099, K1, and other documents may necessitate you waiting beyond the dates listed above; consult your tax advisor for more information.

Golf Tip of the Week

Beat the Fried Egg

When you desire a softer type of explosion shot out of the bunker from what’s commonly known as the fried egg lie, you need to make a few adjustments for the best chance at getting the ball out in one stroke. For one, employ a sightly open clubface and relaxed hands. Make your angle of attack steeper by leaning your weight toward your front foot. This weight shift also accentuates the digging action of the clubhead, making soft hands and an open clubface that much more critical. Otherwise, the golf ball will come out with more velocity than desired.

Allow the club to naturally follow an outside-and-up backswing path. Don’t try to make this happen; just relax your hands and let it go. As is the case with most shots, you’d naturally assume that in order to get out of a fried egg lie, you’d need to follow through to your normal finish position–but not here! You want to leave the clubhead in the sand, buried an inch or so behind the ball. All your effort and momentum should transfer into the sand, not through it. This type of action will make a huge hole in the bunker and will not transmit much energy to the golf ball. If your club follows through at all, it’ll only add to the velocity of the shot and decrease the height at which the ball leaves the trap. But if you stop the club immediately at impact, and maintain soft hands and an open clubface, the ball will come out with more height and less speed. When executing this shot, remember to accelerate down, not through, and fried eggs will become your specialty.

Tip adapted from golftipsmag.comi

Recipe of the Week

Homemade Pizza Bagel

4 servings


  • 4 full-sized plain bagels, halved
  • 1/2 cup store-bought or homemade pizza sauce
  • 8 ounces shredded mozzarella cheese
  • 4 ounces mini pepperoni
  • Dried basil, for garnish


  1. Preheat the oven to 400˚F.
  2. Assemble the pizza bagels: For each half of a bagel, evenly spread 1 tablespoon pizza sauce. Top each with about 1 ounce of cheese and dot with a few mini pepperonis (or just divide the cheese and pepperoni between the bagels). Top all your bagel halves just like this. You should have 8. Lightly sprinkle each pizza bagel with a pinch of dried basil.
  3. Bake the pizza bagels: Bake them for 8 to 10 minutes, until the cheese is melted, and bubbly and the bagels are crispy around the edges. Serve them warm. Leftovers can be stored in the fridge for 3 to 4 days. Reheat in a 350°F oven until warmed through.

Recipe adapted from simplyrecipes.comii 

Health Tip of the Week

8 Strategies for a Healthy Spring

Help prevent chronic diseases like type 2 diabetes, heart disease, and cancer with these 8 healthy habits for spring.

  1. Move more, sit less
  2. Eat healthy foods
  3. Choose your drinks wisely
  4. Get enough sleep
  5. Be sun safe
  6. Brush your teeth
  7. Don’t use tobacco
  8. Learn your health history

Tip adapted from cdc.goviii 

Copyright (C) 2021.  Ballentine Capital Advisors.  All rights reserved.

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15 Halton Green Way
Greenville, SC 29607

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1., March 12, 2021
2., March 12, 2021
3., February 9, 2021
4., 2020 5., March 12, 2021


The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with Ballentine Capital Advisors. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Ballentine Capital Advisors is a registered investment adviser. The advisory services of Ballentine Capital Advisors are not made available in any jurisdiction in which Ballentine Capital Advisors is not registered or is otherwise exempt from registration.

Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.

This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.

No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.

Advisory services through Ballentine Capital Advisors, Inc.


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