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Do You Have to File Taxes on an Estate?

tax filing for estateWhen you are an executor of an estate, you will face many decisions. One of these will be whether or not you are required to file taxes on the estate, which if done incorrectly can complicate the process of settling the estate. Since this decision will be based on such factors as the estate’s value, types of income the estate has, and other factors, it is best to not try to figure out the details on your own. Instead, turn to Washington County WI estate attorneys at McLario Helm Bertling & Spiegel for guidance on this important matter.


When to File a Tax Return

According to IRS guidelines, an executor of an estate must file Form 1041, a federal income tax return, if an estate had a gross income of at least $600 for the tax year or if it has a beneficiary who is a nonresident alien.

What if All Assets are Immediately Distributed?

If you are involved in a situation where you as the executor are able to immediately distribute the estate’s assets to various beneficiaries, you may not need to file an income tax return for the estate. This often happens if property is owned in joint tenancy with a spouse and if bank accounts had payable on-death designations assigned to them, since assets of this nature will automatically pass to beneficiaries. However, to make sure you are clear on this matter, always work closely with experienced estate planning lawyers.

Since this tax form will need to be filed within 12 months after the person’s death, always work with estate planning lawyers to make sure you have everything in order. Rather than make costly mistakes along the way that could complicate the settling of the estate and your role as the executor, schedule a consultation with Washington County WI estate attorneys at McLario Helm Bertling & Spiegel.

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