Surge in Form 1041 filings in 2021?

[Rapid Robert]

The IRS doesn't publish current statistics on the number of Forms 1041 that are filed each year, but it would seem there will be an unusual increase in 2021, given the increase in overall deaths occurring in 2020.

I haven't heard any discussion in the professional tax community about this. I wonder how well end-of-life financial matters will be handled by survivors, especially since they may have been restricted from communicating with the ill in the weeks before death. Imagine the squabbles between beneficiaries, especially if a will was not in place. Then there are appraisals for inherited property, and so on.

If I was a CE provider, I'd be gearing up some good CE for those with limited experience with Form 1041 preparation.

[ATSMAN]

but it would seem there will be an unusual increase in 2021, given the increase in overall deaths occurring in 2020.

So far that I know only two of my clients (both older) died of COVID-19 complications in 2020. Hopefully with increased vaccinations we are able to slow down the death rate in 2021.

In an average year I may prepare 4 or 5 1041 forms for decedent estates.

[Lion]

I had two clients die. And, I have less than 100 clients. I also have about 6 friends and acquaintances that died. My little town of barely 10,000 had 290 deaths that they know of due to Covid, as of early December. (A lot of snowbirds are out of CT before Thanksgiving, so some Weston residents may've died in their FL homes and not count in our totals.) The town says most cases are sport-related and then spread in the home to family and through any home-based social events. Weston lost a two year old and multiple teens. Fairfield County had nearly 400 new cases YESTERDAY. We are surrounded by hot spots in Westport, CT, and also Westchester County, NY.

[Lion]

Update: our little Weston had 34 new positive COVID test results and 1 death last week!

[ATSMAN]

Update: our little Weston had 34 new positive COVID test results and 1 death last week!

I am really disappointed how slowly the actual "shot in the arm" process is going. IMHO the Feds dropped the ball. It is foolish to believe that the job will get done because you have ramped up production and shipped it to the states. The weakest link in this in this whole process is the last mile delivery! I was so sad to see senior citizens sleeping on the sidewalk waiting to get in to get shots! NOT IN AMERICA!

[jmcdtax]

Robert, NATP has an e-book and a course dealing with 1041 filing. And Block Academy also offers an on-line class.

[Lion]

Our internist sent us CT's plan to distribute vaccinations: NOW only healthcare personnel, long-term care facility residents, and medical first responders. LATE JANUARY-MAY critical workforce, residents of other congregate settings, adults over 65, high-risk individuals under 65. JUNE-DECEMBER remaining people over age 16, those under 16 if a vaccine is authorized.

[Bucky]

From the numbers i have seen the overall yearly death rate hasn't changed that much from previous years just different causes of deaths.

[kathyc2]

From the numbers i have seen the overall yearly death rate hasn't changed that much from previous years just different causes of deaths.

It depend what you classify as "that much". It looks like the overall numbers will increase 2019 deaths by 13-14%. The average annual increase for last 20 years is less than 1%.