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INSTRUCTIONS

A. California Revenue and Taxation Code Section

Assistance for persons with disabilities: We comply with

19513 Tax Certificates

provisions of the Americans with Disabilities Act. Persons with

hearing or speech impairments, call:

For certain estates, Section 19513 of the Administration –

From voice phone: (800) 735-2922

Franchise and Income Tax Law prohibits the probate court

(California Relay Service)

from allowing the final account of the fiduciary unless the

From TTY/TDD:

(800) 822-6268

Franchise Tax Board (FTB) certifies that all taxes have been

(direct line to our customer service)

paid or secured as required by law.

D. Other Information

The certificate is only required if an estate meets BOTH of

A copy of the Final Account of the fiduciary need not be

the following TWO requirements:

submitted unless we request it.

(1) Had assets with a fair market value exceeding

Fiduciaries may be required to withhold tax on California

$400,000 on the date of death, AND

source income distributed to nonresident beneficiaries. Income

(2) Is to distribute assets exceeding $100,000 to

from intangible personal property such as interest and dividend

one or more nonresident beneficiaries.

income or gain from the sale of stocks or bonds is generally

not taxable to a nonresident beneficiary and therefore not

In determining if the assets exceed $400,000, include the fair

subject to withholding. Failure to withhold when required may

market value of all assets on date of death, wherever situated,

make the fiduciary personally liable for the amount due. For

for decedents who were California residents. For nonresident

information on determining requirements for withholding

decedents, include the value of only those assets located in

telephone (916) 845-4900 (not toll free) or write to

California.

FRANCHISE TAX BOARD, NONRESIDENT WITHHOLDING

In determining if assets exceeding $100,000 are distributable

SECTION, PO BOX 651, SACRAMENTO, CA 95812-0651.

to nonresident beneficiaries, the residency of a trust which is a

Income earned by the estate in the final year in which its

beneficiary of the decedent’s estate is determined by the

assets are distributed pursuant to a decree of final distribution

residency of the trustees.

is taxable to the beneficiaries. However, the estate is required

Before issuing the certificate, the FTB requires payment of all

to file a final return and properly report the income distribution.

accrued taxes of the decendent and of the estate and may

The return for the fractional part of the year prior to death

also require a cash deposit to secure the payment of any taxes

should be computed on the basis of the method of accounting

which may later become payable.

followed by the decedent. Income and deductions for

The certificate is valid only to the end of the current taxable

expenses, interest, taxes and depletion accrued solely by

year. A new certificate extending the expiration date will be

reason of death are not includible in the return of a decedent

issued only when a return is filed for each subsequent year

for the period in which death occurred. Such items should be

and the tax for that year, if any, is paid.

included in the return of the estate or beneficiary, as the case

may be, upon receipt or payment thereof.

The certificate is issued to the fiduciary or representative

designated on the application. THE ACTUAL FILING OF THE

Return filing requirements will be found in the

CERTIFICATE WITH THE COURT IS THE RESPONSIBILITY

applicable instructions for the:

OF THE FIDUCIARY OR REPRESENTATIVE.

•

Individual Form 540, 540A, 540EZ, 540 2EZ,

or 540NR

B. Effect of the Certificate and Continuing Liability of

•

Estate Form 541

the Fiduciary

The tax certificate issued under California Revenue & Taxation

E. Final Returns

Code Section 19513 does not relieve the estate of liability for

A final fiduciary return (Form 541) is required to be filed for the

any taxes due or which may become due from the decedent or

year in which the estate closes if the filing requirements are

the estate. Neither does the certificate relieve the fiduciary of

met. A return should also be filed to establish any excess

the personal liability for taxes and other expenses as imposed

deductions allowed to beneficiaries in the final year.

by California Revenue & Taxation Code Section 19516

(formerly Section 19265).

A final personal income tax return (Form 540, 540A, 540EZ,

540 2EZ, or Form 540NR) filed for a decedent should be

C. Basis of Community Property

marked at the top of the return in block letters: ‘‘Final’’.

For information on determining the basis for community

property write to: FRANCHISE TAX BOARD, PO BOX 942840

SACRAMENTO, CA 94240-0040, or telephone

ASSISTANCE:

From within the United

States call . . . . . . . . . . . . . . . . . . . .

(800) 852-5711

From outside the United

States call (not toll free) . . . . . . . . . . .

(916) 845-6500

Internet Site:

FTB 3571 C2 (REV 11-1999) SIDE 2

Instructions For Form Ftb 3571 - Request For Estate Income Tax Clearance Certificate

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