Tax Issues

Two things are unavoidable in this life, as the cliche goes - death and taxes.  Yes, taxes are unavoidable, but tax requirements during the administration of an estate can be extremely daunting.  There are various tax forms and filing requirements for estates, and below is a description of some of those tax forms.

The first tax return that may be required during the administration of an estate is the final income tax return of the deceased person ("decedent").  In spite of the best intentions, many people do not keep thorough or organized records as far as their taxes are concerned, so trying to recreate the information necessary to complete an accurate tax return on behalf of a decedent can be...taxing.  Nonetheless, that is one of the requirements placed upon the Executor or Administrator of an estate. 

tax frustration

Depending on the circumstances surrounding the estate, the Executor or Administrator may also need to file one or more fiduciary income tax returns, an estate tax return, and/or a gift tax return.  These tax filings can be extraordinarily complicated, and you want to be absolutely certain that you fulfill your duties with regard to the ongoing tax obligations of the estate.  The cost of failing to meet those tax burdens can be hefty, but can also be avoided by having legal/tax counsel along the way.

signing taxes

You do not have to bear these burdens without help.  In most instances, an Executor or Administrator can hire an accounting or law firm to prepare the decedent's final taxes return, and any fiduciary income tax, estate tax, or gift tax returns that may be needed, and the assets of the estate are generally available to pay that fees for the tax preparation, as a valid estate administrative expense.  Contact us to avoid any tax pitfalls that may be looming on the horizon.  No, you cannot avoid taxes, but with professional help, you do not have to lose any sleep over them.

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