Description

What Trustees Need to Know About Inherited Property, Taxes & Trust Administration (with CPA Expert Sargis Isavi)

When someone passes away, families are suddenly faced with real estate decisions, trust paperwork, tax responsibilities, and deadlines they never expected. Most trustees don't realize they've just taken on a legal and financial job — one that comes with liability, rules, and complex tax requirements.

In this episode, I talk with Sargis Isavi, a CPA and Tax Manager with 25+ years of experience specializing in trusts, estates, and high-net-worth tax planning, to break down exactly what people need to know when inheriting property.

This is one of the clearest conversations you'll hear on trust administration, step-up in basis, tax risks, trustee mistakes, and how to avoid costly penalties. All from a CPAs perspective.

What You'll Learn in This Episode

1. What actually happens when someone inherits a property

A step-by-step breakdown from a tax and accounting perspective of what trustees must do immediately after a loved one passes away.

2. The CPA's real role in trust administration

Most trustees think they only need an attorney — Sargis explains why a CPA is equally essential and how they work together.

3. Should you keep using the decedent'CPA?

Why trusts require a specialist, not a generalist CPA — and how the wrong choice can lead to thousands in penalties.

4. The hidden tax traps trustees miss

Trusts hit the highest federal tax bracket (37%) at just ~$13,450 of income. Sargis explains why this catches people off guard.

5. Grantor vs. Irrevocable Trusts

How they work, how taxes differ, and what trustees must understand before distributing anything.

6. The biggest mistakes trustees make

Including:

• Commingling trust funds
  
  

• Missing tax filing deadlines
  
  

• Not securing trust assets
  
  

• Poor record-keeping
  
  

• Causing disputes among beneficiaries
  
  

• Using the wrong professionals
  
  

• Not understanding trust terms
  
  

7. Step-up in basis: Why it matters

Real examples of clients who saved hundreds of thousands simply by correcting a missed step-up.

8. Estate & inheritance taxes — and the 2025 law changes

Everything trustees must know about:

• The $13.99M exemption
  
  

• The possible drop to ~$7M
  
  

• Which states tax estates
  
  

• Form 706 & portability
  
  

• Why "gross value" matters more than net value
  
  

9. Why you NEED a real date-of-death appraisal

Not from a real estate agent — from a licensed appraiser. Sargis explains why the IRS challenges BPOs and how to avoid future tax bills.

10. Real client stories

Sargis shares cases where expert CPA work resulted in:

• $15,000 penalty abatement
  
  

• $200,000 tax refund
  
  

• Over $1M in reduced estate tax
  
  These examples show why who you hire matters.
  
  

Key Takeaways

• A will alone does NOT avoid probate.
  
  

• Trusts must be funded or they're useless.
  
  

• Trustees can be personally liable for mistakes.
  
  

• Taxes on estates are complex — small errors can = big penalties.
  
  

• Planning before death saves families money.
  
  

• You need a team: CPA + Estate Attorney + Financial Advisor.
  
  

• Always get your trust reviewed and updated regularly.