How Are Taxes Handled In Probate?
- September 9, 2021
- David Greene
- Comments Off on How Are Taxes Handled In Probate?
Two kinds of taxes can arise during probate. One is the estate tax which does not come into play unless the estate is worth more than $11 million. These taxes, which can be at a rate of 50% or more, are a debt of the estate, not the Personal Representative or beneficiary. That minimum amount can change from year to year, however. The second type of tax occurs if the decedent earned income during the year in which he died. Then the estate must file an Estate income tax return, Form 1041, to account for the decedent’s income during the year during which he died.