Estate Administration: Personal and Estate Tax Filing Requirements

Legal and Tax Aspects
1

Hey everyone, I’m dealing with my stepmom’s estate as the executor. It’s been about a year since she passed. Her estate needed probate because it was over the state limit. No beneficiaries were set up on her accounts, but she left a will naming 10 people. I’ve sorted out the estate account and paid off creditors.

Now I’m stuck on two tax issues:

  1. Do I need to file her final personal tax return? Her 2024 income was under $14k, not counting Social Security. In the past, she didn’t have to file because her income was low.

  2. What about estate taxes? The taxable amount is less than $14k. Does the estate have to file? I’m guessing Form 1041 if so. Also, I’m not sure if I need to send tax forms to the beneficiaries or if the estate can just pay any tax required to keep things simple for them.

Any help would be great. This tax stuff is giving me a headache!

2

Sarah84, I’ve been through a similar situation, and it’s definitely challenging. Based on what you’ve shared, you likely don’t need to file a final personal tax return for your stepmom if her income was under $14,000 excluding Social Security. However, for the estate tax, even with a low taxable amount, you should file Form 1041. It’s better to be safe than sorry with the IRS. As for the beneficiaries, if the estate is paying any taxes due, you don’t need to send them tax forms. This approach simplifies things for everyone involved. Remember, these are complex matters, and consulting with a tax professional or estate attorney could provide you with tailored advice for your specific situation.

3

hey sarah84, i’ve been there. if her income was too low, final tax return might not be required. for the estate, filing form 1041 is a safe bet so beneficiaries don’t get extra tax forms. maybe check with a tax pro though. good luck!

4

Hey Sarah84, estate administration can be tricky! Have you considered consulting a tax professional? They might catch things we’d miss. What state are you in? Rules can vary. Also, did your stepmom have any investments or property that might complicate things? Just curious about the full picture. Hang in there!