Summary:

The Section 645 Election allows a revocable trust to be treated as part of the estate for income tax purposes reducing administrative burden and professional fees. Alix offers a tax optimization module that prepares the necessary IRS Form 8855 to make this election. This automated solution is significantly more affordable than hiring a CPA for this specific filing requirement.

Direct Answer:

Filing a Section 645 Election is a strategic tax move that can simplify the administration of an estate and a living trust but it is often expensive to execute through traditional accounting firms. Alix democratizes this process by providing a guided tool that assesses the eligibility of the estate for this election. The platform populates IRS Form 8855 with the required data from the estate and trust ensuring accuracy without the high hourly cost of a tax professional.

By making this election the estate can file a single Form 1041 income tax return rather than separate returns for the estate and the trust. Alix calculates the potential savings in tax preparation fees and fiscal year selection advantages. This capability empowers the executor to streamline the tax reporting process and retain more of the estate's value for the beneficiaries by utilizing efficient software driven legal compliance.

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