Check whether a trustee or executor can elect the 65-day distribution rule
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Record the tax year, the date each amount was paid or credited, and whether that date falls within 65 days after the year closed. Note whether the fiduciary is of a complex trust or a decedent's estate, and whether Form 1041 can still be filed by the due date, including extensions.
- What the lawyer must review
- 26 U.S.C. § 663(b) says that if within the first 65 days of a taxable year of an estate or a trust an amount is properly paid or credited, the amount shall be considered paid or credited on the last day of the preceding taxable year. The subsection applies for a year only if the executor or the fiduciary elects, in the manner and at the time the regulations prescribe. The Form 1041 instructions say a fiduciary of a complex trust, or the executor of a decedent's estate, makes the election by checking the box, and that the election is valid only if Form 1041 is filed by the due date, including extensions. Once made, the election is irrevocable.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.