On Friday, April 7th, Attorney, Steven Berger discusses, whether or not estates need to pay taxes.

As we approach tax day on April 15th, we think about this affects taxes.

In the last year for the decedent, the remaining spouse can still file married jointly. The decedent would need to have a filing on any trust income.

Payments to beneficiaries can also have tax implications. K1 is a tax deduction from the tax liability. Attorney and accountant fees are deductible.

The personal representative is ultimately liable for the taxes which is why we warn not to distribute all the income and taxes prior to completing all taxes.

Sometimes large care expenses don’t get counted in the beginning and often amendments are needed.

The end of the tax year for the 1040 is the date the decedent passed away.

From that point forward there is a requirement to pay taxes generated by the estate when income is over $600.

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