Income Taxes

A number of income tax matters will have to be attended to throughout the estate settlement process. How much time you have to spend to address any particular requirement will depend on the circumstances and when the decedent passed away.

First, you will have to file the decedent’s final individual income tax return for the year of his or her death.

Second, once you are appointed as the personal representative, you will need to obtain a federal tax identification number for the estate, pay quarterly estimated income taxes to the state department of revenue and (later) the IRS, and file estate income taxes each year until the estate is closed.

Third, if there is a funded trust (a trust with assets in it), you will have to get a federal identification number, then pay estimated taxes and file trust income tax returns for every year that the trust remains funded.

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