Register distributions that may fall under the 65-day estate and trust rule
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Table amounts the file shows as paid or credited in the first 65 days of the estate or trust year, and whether the file shows an election. Do not treat the amount as last year's distribution.
- What the lawyer must review
- 26 U.S.C. § 663(b) provides that an amount properly paid or credited within the first 65 days of a taxable year of an estate or a trust is treated as paid or credited on the last day of the preceding taxable year, but only if the executor or fiduciary elects, in the manner and at the time the Secretary prescribes. The election is not automatic. This is not a 30 June year-end rule. Subsection (c), the separate-share rule, is a different rule and was not applied here. Open the regulation for how and when the election is made before you treat a January or February payment as belonging to the prior year.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming the tool’s capability and 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
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Obtain and inspect the relevant current official register or search result. Confirm identities, interests and the date and scope of the search.
- 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.