When planning your estate, it is important to carefully choose your personal representative (in some states called an executor). This person is responsible for settling your affairs after your death. This role has an extensive list of duties, including organizing your assets, coordinating with your creditors, and fulfilling responsibilities to your heirs or beneficiaries.
The personal representative must also complete various tax-related tasks with the IRS, which may include the following:
- Filing tax returns for you, the decedent, for the year before death as well as a final return for year of your death
- Filing taxes on gifts before death
- Filing income tax returns for the estate
- File Filing estate tax returns, depending on the estate’s gross value
These requirements might seem straightforward, but they can become complex based on the estate’s details and the decedent’s circumstances before passing on. The personal representative might also need to file tax returns on other items and use the estate to cover any overdue payments to the IRS.
Going through the probate process
Filing tax returns and settling IRS payments are essentials in the probate process. Typically, these tasks come first before distributing estate assets. A personal representative must prioritize these and other requirements to manage your estate properly. Please note, that under Florida Law, a Personal Representative must be represented by counsel at all times.
Feeling worried about probate and how it could affect your estate after your death is normal. If so, speak to a lawyer about preparing a comprehensive estate plan. It could help address your concerns and minimize issues your surviving family might face because of complications during probate.
