Estate Settlement and Taxes: What You Need to Know

LegacyLogix.com
December 4th, 2024

There’s no escaping taxes when settling an Estate. An executor/trustee is responsible for filing tax returns for both the deceased and the Estate itself. Many executors will require assistance from specialized tax and legal professionals to ensure compliance.

Here is a preliminary list of tax activities to consider throughout the settlement process:

1. Apply for a tax ID (EIN) for the Estate
2. File the deceased’s final income tax return
3. File taxes related to businesses owned by the deceased
4. File Estate income tax returns
5. Verify if Estate and inheritance taxes apply
6. Consider/pay any taxes due before distributing assets
7. Obtain tax clearance before closing the Estate