Death and Taxes


         When someone dies, an executor is appointed to identify the assets of the estate, pay its debts, and distribute what is left to the heirs. What some not realize is that the executor is also responsible for arranging to pay any taxes and filing the appropriate tax forms. This is a situation that can become very complicated for several reasons, so here are a few details to help get you through a difficult time.

          For an unmarried person, the last Form 1040 should be filed the same as it would normally. It would cover the time from January 1 to the day of their death. There is the possibility of being able to deduct uninsured final medical expenses. If they are married, and the surviving spouse remains single until December 31 of that year, then the last Form 1040 can be filed as a joint return. In this way, they can continue to enjoy more favorable income tax rules. This may even be possible for the next 2 years.

          Dealing with the death of a loved one is stressful for so many reasons. Having to deal with tax implications is very rarely a priority. Keeping these points in mind, and talking with a Qualified Tax Professional for guidance, will help you to navigate the tax issues that come up when someone dies.

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