Source: http://www.taxprofessionalsresource.com/articles/view.php?article_id=13278
Timestamp: 2019-04-21 11:20:21+00:00

Document:
1. Some Tax Elections. Such elections and actions may, in appropriate cases and where necessary qualification conditions are met, include the following major matters.
(a) Returns Required. Filing necessary tax returns is required, including decedent's final federal and state income tax return through date of death (Form 1040, Utah Form TC 40), the estate's federal and state income tax returns from date of death forward (Form 1041, Utah Form TC 41), decedent's gift tax returns for gifts prior to death (Form 709) (Regs. § 25.6019-1(g)), the estate's estate tax return (Form 706), and any state estate or inheritance tax return (Utah Form TC 44R). In some cases, there may be other returns required for payroll tax (e.g., for a sole proprietor), certain excise taxes, etc.
(iv) to request prompt assessment and discharge of liability (IRC §§ 6501(d) and 6905) (note: the IRC § 6905 request for discharge only applies to a court-appointed personal representative, not to a trustee or other person serving a similar function).
(ii) to request prompt assessment and (for a court-appointed personal representative) discharge of liability for gift and generation skipping tax (IRC §§ 6501, 6905, 2661).
(iv) whether to treat a distribution made within 65 days after end of estate's fiscal year as if it were made on the last day of year (IRC § 663(b)).
(x) whether to request early determination of tax and discharge of personal liability of the personal representative (IRC § 2204).
(a) Trapping Distributions. Whether or not to make what are called trapping distributions in funding trusts. A distribution from the estate to a trust of distributable net income (usually along with a distribution of assets) is a distribution of income from the estate, but for state law trust accounting is treated as the receipt of principal not distributable to the trust's income beneficiaries. The trust ends up paying the tax on the distributable net income it received. With the trust rates reaching the highest marginal rates as quickly as they do now, this is seldom a good idea any more, so it may be well in many cases to avoid trapping distributions. Also, the Tax Court has treated beneficiaries as receive a share of the "income" at least where the beneficiary would otherwise receive tax-exempt trust income, applying a character of income preservation and a no-specific tracing of items policy. Van Buren v. Comm'r, 89 T.C. 1101 (1987).
(iv) the property must pass without direction from the disclaimant to the transferor's spouse or someone other than the disclaimant (i.e., the spouse may disclaim for the spouse's own benefit, for example, the disclaimed property may pass from a marital trust to a family trust.
(d) S-corporations. Steps may be needed to maintain the S-election for small business corporations, such as disclaiming or distributing stock or dividing trusts into qualified trusts which may be shareholders. Only certain limited kinds of trusts may be S-corporation shareholders. IRC § 1361.
(e) Retirement Plans. The personal representative may need to take steps, such as making distribution elections or disclaimers, to minimize the income tax which may arise from qualified retirement plans or IRAs.
Langdon T. Owen, Jr. is a member of the law firm of Parsons Kinghorn Harris, p.c. in Salt Lake City, Utah. Mr. Owen is a transactional lawyer who practices in the areas of estate and tax planning, business and commercial transactions involving both corporate and partnership taxed enterprises (including tax, employment, and benefit issues relating to such transactions), loans and creditors' workouts, pension and profit sharing plans, health care law, probate, and real estate.

References: § 25
 § 6905
 § 663
 § 2204
 v. 
 § 1361