paying tax for an estate

[celfan]

My mother passed away with a will on March 24 this year. It's a pretty straight forward will and there will be only a couple of bank accounts totaling 80 thousand dollars split by my brother and I as there are no other heirs. My brother has consented the will. I am currently petitioning the court to be executor. as my mother requested in her will. In the package of forms I received, I noticed that nothing will be released until all taxes are paid. My mom was receiving a few payments for pension retirement funds so she would have needed to file taxes for Jan through March of this year. My question is, will I have to wait until next year to pay her 2019 taxes? That would leave the assets frozen longer than I'd like. Thank you.

 

[quincy]

What is the name of your mother's state?

My sympathy over the recent loss of your mother.

 

[celfan]

Vermont

 

[adjusterjack]

My question is, will I have to wait until next year to pay her 2019 taxes?

Yes.

See IRS Publication 559:

https://www.irs.gov/pub/irs-pdf/p559.pdf
However, you may be able to figure out how much tax will be owed, if any, and make partial distribution of the assets, leaving enough to pay the taxes when due.

The packet you got from the court may not be totally indicative of your state's probate code, which you should study up on.

 

[LdiJ]

My mother passed away with a will on March 24 this year. It's a pretty straight forward will and there will be only a couple of bank accounts totaling 80 thousand dollars split by my brother and I as there are no other heirs. My brother has consented the will. I am currently petitioning the court to be executor. as my mother requested in her will. In the package of forms I received, I noticed that nothing will be released until all taxes are paid. My mom was receiving a few payments for pension retirement funds so she would have needed to file taxes for Jan through March of this year. My question is, will I have to wait until next year to pay her 2019 taxes? That would leave the assets frozen longer than I'd like. Thank you.

As Adjuster Jack said you won't be able to file a 2019 tax return for your mother until tax season this upcoming year. However, a local tax pro could easily help you figure out what possible taxes your mother might owe, which would allow you to distribute all but enough to cover taxes and other expenses.

 

[Taxing Matters]

My question is, will I have to wait until next year to pay her 2019 taxes?

Technically the answer is no, you don't have to wait to pay. Though the estate must wait to file the return, the estate may pay the tax with an estimated tax payment sufficient enough to cover the tax that is anticipated to be owed. Just understand that if the tax due ends up short and the estate is fully distributed and cannot pay what is owed, the executor is personally on the hook for that and the IRS could go after beneficiaries, too. The executor also bears some personal liability risk that tax might be owed later if the IRS adjusts that return or any other return of the decedent if the estate cannot pay it unless the executor obtains a clearance letter from the IRS before distribution to the beneficiaries.