Probate Process: Dealing with Taxes

One of the most important aspects of the probate process is handling the taxes. The deceased individual's estate will have to pay their tax liability. For every estate that goes through probate, there will be a personal representative that is in charge of handling this responsibility. If the deceased individual had a will, they should have an executor appointed to handle this. If they did not have a will, the court is going to appoint an administrator to take care of this.

Filing Taxes

The personal representative is responsible to file tax returns for the deceased individual. They will also have to handle filing a tax return for the estate itself. This means that they are going to have to file a federal and state tax return on behalf of the deceased.

Paying Taxes

After the tax liability is determined, the person represented is going to have to actually pay the taxes out of the funds from the estate. They will typically write a check from a checking account that has been created for use for the estate. The personal representative should also pay other taxes such as personal property taxes or real estate taxes.

blog comments powered by Disqus