Estate/inheritance taxes (insurance, expenses, debt, tax)

[MAtheBanker]

Who would one go to to inquire about having to pay estate and/or inheritance taxes after someone passes away? If it helps, this person did not have a will but our family did go through probate court and named one sibling as executor.

Thanks

[killer2021]

Tax attorney

but just post the exact question/situation here as there are lots of smart people who might be able to help you out.

[bale002]

Originally Posted by MAtheBanker

Who would one go to to inquire about having to pay estate and/or inheritance taxes after someone passes away? If it helps, this person did not have a will but our family did go through probate court and named one sibling as executor.

Thanks

You go to a probate/estate planning lawyer, most of them usually also handle tax matters, though you will probably go to a CPA to file the actual return (1041).

Having said that, if the decedent died in 2010 there is no federal estate tax. If in 2009, there is no federal estate tax up to $3M and after that, minus expenses, at a rate of 45%. If in 2011, then the federal estate tax exemption goes back down to $1M and the rate goes back up to 55%, unless Congress takes action.

Depending on the state that you live in, there may be inheritance taxes. Therefore go to a probate/estate planning lawyer with knowledge of tax matters in your state and/or the state where the decedent deceased.

You have nine months to pay estate taxes, if any, and a possible six-month extension to file the actual return.

Good Luck!

[MAtheBanker]

Here's a bit of background in case it helps.

Mom passed away and had no will. Our family went through probate court to establish a executor without the aide of a probate attorney. Mom had no life insurance (that we know of) but had her house up for sale, which was already under contract before she passed. The house closed last week, and the money (after some debts and realtor commission have been paid) will be split between seven people, including 6 children and one family friend.

I've already looked and Utah, where our mom lived, does not require an inheritance tax for direct descendants. The family friend will probably have to pay, I'm guessing.

Does any of this change things?

Another friend of the family is a probate attorney, so we're in the process of setting up a meeting with him to discuss our tax liability.

[rulesforrebelsdotcom]

Estate Taxes aka Death Taxes are criminal. The person who died paid income taxes on that money as well as taxes on any investments made with that money on top of every other tax, fee and surcharge they paid through their life and now the government decides they get to take half of what should be passed down to ones children, family, friends or charity. Any politician who supports these types of taxes should be thrown out of office.