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Executors have duty of addressing final taxes during probate

On Behalf of | Jun 10, 2019 | Probate & Estate Administration |

Settling the final affairs of a loved one’s Texas estate goes far beyond simply distributing remaining assets to heirs and beneficiaries. The executor of the estate will need to address numerous tasks during probate that he or she may have little experience handling. For instance, it is up to the executor to ensure that tax-related issues for the estate are addressed properly.

Filing the final tax return is a duty that the executor must handle, and in simple terms, it can seem like a relatively straightforward task. For an unmarried decedent, the executor will file the appropriate tax form — Form 1040 — and the information for that form will adhere to the dates from January 1 through the date of the decedent’s passing. Of course, the situation may not be as simple as just filling out the form and filing it. The decedent may have had extenuating financial circumstances to address.

For example, if the person became ill and accumulated considerable medical expenses before he or she passed, the executor will need to determine how those costs may affect the person’s final taxes. Additionally, the executor may need to explore how any trusts the decedent created could affect tax filings. For instance, an unmarried person’s trust will become irrevocable after his or her death and become its own taxable entity.

Understandably, executors may easily become overwhelmed when handling their deceased loved ones’ final taxes and other financial affairs. Of course, Texas residents who have taken on this role do not have to guess at the best way to address these important matters. They could choose to work with financial and legal professionals who could guide them through the important aspects of properly completing the probate process.