It is tax time. Hopefully, you have already done your taxes and are now awaiting a nice, big refund. OK, that may be wishful thinking.
One the major tasks in settling an estate is filing the Inheritance Tax Return (in those states with inheritance tax). The deadline for filing inheritance tax return is not the same as the April 15th, income tax deadline. Inheritance tax returns for states like Pennsylvania are due within 9 months of the death. After determining the taxable assets less all debts of the decedent, the net amount will be subject to the applicable state tax rate. Generally, the will provides who will be responsible for the payment of the tax. However, for ease of administration, it is best if the tax is paid by the estate. Otherwise, if the beneficiaries fail to make the tax payment, the executor might be held responsible.
The executor will want to seek professional advise when preparing the inheritance tax return. Contact our office for that advice and guidance.
One the major tasks in settling an estate is filing the Inheritance Tax Return (in those states with inheritance tax). The deadline for filing inheritance tax return is not the same as the April 15th, income tax deadline. Inheritance tax returns for states like Pennsylvania are due within 9 months of the death. After determining the taxable assets less all debts of the decedent, the net amount will be subject to the applicable state tax rate. Generally, the will provides who will be responsible for the payment of the tax. However, for ease of administration, it is best if the tax is paid by the estate. Otherwise, if the beneficiaries fail to make the tax payment, the executor might be held responsible.
The executor will want to seek professional advise when preparing the inheritance tax return. Contact our office for that advice and guidance.
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