An executor has numerous different responsibilities in the process of closing out a person’s estate. Who you choose to serve in this executor or personal representative role is important because he or she may also need to communicate with your loved ones during the process.
Furthermore, there is some complicated steps that must be addressed by the executor, including the filing tax returns. By tax day of the year following their death, an individual income tax return needs to be filed for the deceased person. If that estate earns income during any part of the administration, its own tax identification number can be important to keep track of any potential tax consequences and the earnings as well.
The vast majority of estates do not have enough assets inside them to file federal estate tax returns, but if one is needed, it must be filed and paid within nine months of the date of death. Severe penalties and interests can apply if this deadline is skipped.
Many people installed as executors or personal representatives choose to consult with a knowledgeable probate attorney to verify that they have covered all of their bases in this situation and minimize any possible personal consequences. If you have further questions about how to set your executor up for success by having comprehensive estate planning in place, now is a great time to schedule a consultation with a dedicated estate planning lawyer.
If you think that your executor will need to file a tax return, you can make things easier for them by creating a comprehensive plan and asset list on your end. This can be provided as part of your transfer of information to your executor with your estate planning documents like a will, since this gives an executor a good place to start.
Contact our dedicated NH estate planning lawyers to get started.