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.

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

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

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

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

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

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
  
  

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

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
  
  

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

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.
  
  

• 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.