Death and Taxes: How is the IRS Involved after a Decedent’s Death?

IRSA personal representative has the responsibility to pay amounts owed by the decedent or the estate to the IRS. Taxes are normally paid from probate assets in the decedent’s estate, and not by the personal representative from his or her own assets; however, under certain circumstances, the personal representative may be personally liable for those taxes if they are not properly paid.

Estate planning in Florida1. The estate will not have any tax filing or payment obligations to the State of Florida; however, if the decedent owed Florida intangibles taxes for any year prior to the repeal of the intangibles tax as of January 1, 2007, the personal representative must pay those taxes to the Florida Department of Revenue.

2. The decedent’s death has two significant tax consequences: It ends the decedent’s last tax year for purposes of filing the decedent’s federal income tax return, and it establishes a new tax entity, the “estate.”

3. The personal representative may be required to file one or more of the following returns, depending upon the circumstances:

IRS U.S. Income Tax• The decedent’s final Form 1040, Federal Income Tax Return, reporting the decedent’s income for the year of the decedent’s death.

• One or more Forms 1041, Federal Income Tax Returns for the Estate, reporting the estate’s taxable income.

• Form 709, Federal Gift Tax Return(s), reporting gifts made by the decedent prior to death.

• Form 706, Federal Estate Tax Return, reporting the decedent’s gross estate, depending upon the value of the gross estate.

The personal representative may also be required to file other returns not specifically mentioned here. For help or answers to estate-related questions, you can contact BaskinFleece at 727.572.4545.

This blog is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Some of the content of this information is courtesy of The Florida Bar and represents general legal advice. Because the law is continually changing, some provisions in this blog may be out of date. It is always best to consult an attorney about your legal rights and responsibilities in your particular case.

Estate Planning in Tampa, St. Petersburg and Clearwater Florida.

Colleen-VideoButtonThe video below provides information about important documents that need to be included in an estate plan. Estate planning in Clearwater, St. Petersburg and Tampa is planning for your life time (who acts on your behalf when you become incapacitated), as well as for when you pass away. Your will only governs what happens after you pass. Estate planning is not just for the wealthy, it’s for anyone who is 18 years or older who wants to make their own medical, financial and health decisions – an estate plan puts all that in place. Without an estate plan in Tampa, Clearwater, St. Petersburg or anywhere else you live in Florida, you might end up with a court appointed guardian, and the court choosing who becomes your personal representative.

If you need estate planning in St. Petersburg, Tampa or Clearwater or anywhere else in the state of Florida, contact BaskinFleece at 727.572.4545.

 

This blog/video is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

Estate Planning: Can a Will Reduce Income Taxes?

Attorneys are best to handle assets from a trust

A well-drawn will can reduce estate and income taxes that may arise when someone dies. Estate taxes are often by far the largest cash expense an estate can have. There is also the possibility that Congress may increase the impact of the estate tax in the future. In addition, proper planning must be made for income tax advantages. Proper estate planning with a will is indispensable in taking these benefits in the tax codes. For help or answers to will and estate related questions, you can contact BaskinFleece at 727.572.4545.

 

The content of this information is courtesy of The Florida Bar and represents general legal advice. Because the law is continually changing, some provisions in this blog may be out of date. It is always best to consult an attorney about your legal rights and responsibilities in your particular case.

Problems with Joint Ownership to Avoid Probate

Straight or Gay Marriage and joint ownership regarding probate

Joint tenancies with rights of survivorship can be established when two or more persons title bank accounts and other assets in their multiple names with the intent to have ownership pass directly to the surviving named owners when one dies. A “tenancy by the entireties” is much the same but involves only married persons. These forms of joint ownership can avoid probate of the account or other asset when an owner dies. While this can be very efficient in some cases, use of joint ownership can be fraught with problems at death and cause more problems than it solves.

Probate and same sex marriage Among other unforeseen problems, indiscriminate use of joint ownership can cause an increase in estate taxes over the joint lives of married persons, force double probates in the event of simultaneous deaths, create unfairness as to who pays for funeral expenses and claims against the decedent, raise undesired exposure during life to the debts of co-owners, and cause a shortage of funds for payment of estate taxes which can cause litigation with the taxing authorities.

For help or answers to will and estate related questions, you can contact BaskinFleece at 727.572.4545.

 

Some of the content of this information is courtesy of The Florida Bar and represents general legal advice. Because the law is continually changing, some provisions in this blog may be out of date. It is always best to consult an attorney about your legal rights and responsibilities in your particular case.

Wills, Trusts and Estate Planning in Clearwater, St. Petersburg, Tampa and Throughout Florida

 

BaskinFleece has the expertise to assist in estate planning for high-wealth individuals as well as for modest estates requiring only simple wills. - See more at: http://www.baskinfleece.com/practice-areas/estate-planning/#sthash.GP9ZMsOn.dpuf

The estate planning process should always include a thorough examination of not only the tax implications, but also the non-tax ramifications, which might include asset protection, and provisions for long-term healthcare needs.

BaskinFleece prides itself on its unique ability to handle all aspects of wills and trusts, includingestate planning. Estate planning and private wealth transfer may sometimes involve complex tax planning, requiring the assistance of skilled and knowledgeable legal counsel. Wills, trusts and estate planning for most individuals, Wills, trusts and estate planning for most individuals, however, involves making decisions about who is to receive their property after death. BaskinFleece has the expertise to assist in estate planning for high-wealth individuals as well as for modest estates requiring only simple wills - See more at: http://www.baskinfleece.com/practice-areas/estate-planning/#sthash.frBql2HN.dpufhowever, involves making decisions about who is to receive their property after death. BaskinFleece has the expertise to assist in estate planning for high-wealth individuals as well as for modest estates requiring only simple wills. The estate planning process should always include a thorough examination of not only the tax implications, but also the non-tax ramifications, which might include asset protection, and provisions for long-term healthcare needs. The typical “will conference” includes a discussion of Florida’s new power of attorney laws, which are now very comprehensive and complex, as well as the advance directives for living wills, selection of a pre need guardian, and very importantly, a healthcare surrogate.

Our lawyers have handled a variety of cases involving will and trust litigation in the courts of Tampa, St. Petersburg, Clearwater and throughout Florida. BaskinFleece handles all aspects of probate and trust administration. For more information click BaskinFleeceor call us at 727.572.4545.

Wills, Trusts and Estate Planning

Retired couple estate planning

BaskinFleece prides itself on its unique ability to handle all aspects of wills and trusts, including estate planning. Estate planning and private wealth transfer may sometimes involve complex tax planning, requiring the assistance of skilled and knowledgeable legal counsel. Wills, trusts and estate planning for most individuals, however, involves making decisions about who is to receive their property after death.

BaskinFleece has the expertise to assist in estate planning for high-wealth individuals as well as for modest estates requiring only simple wills. The estate Wealthy couples and estate planningplanning process should always include a thorough examination of not only the tax implications, but also the non-tax ramifications, which might include asset protection and provisions for long-term healthcare needs. The typical “will conference” includes a discussion of Florida’s new power of attorney laws, which are now very comprehensive and complex, as well as the advance directives for living wills, selection of a pre-need guardian, and very importantly, a healthcare surrogate.

Our lawyers have handled a variety of cases involving will and trust litigation in the courts of Tampa, St. Petersburg, Clearwater and throughout Florida. BaskinFleece handles all aspects of probate and trust administration. For more information click here, or call us at 727.572.4545.

 

Estate Planning: Who should prepare a will?

No sensible person would employ “just anyone” to fill teeth, take out an appendix, or deliver a baby. The person who wants these services performed skillfully with the minimum risk to health, life, property, or the accurate execution of his or her wishes, will engage the services of a trained person. Except in dire emergency, these important tasks should not be performed by anyone except the professional.

Wills and Estates: Preparing a willThe drafting of a will involves making decisions that require professional judgment which can be obtained only by years of training, experience, and study. Only the practicing lawyer can avoid the innumerable pitfalls and advise the course best suited for each individual situation. In addition, an experienced attorney will be able to coordinate the use of other skilled professionals, such as an investment advisor, actuary, insurance specialist, and tax accountant to complete a proper estate plan.

Moreover, there is no such thing as a “simple will.” Even smaller estates can have complexities only foreseeable by the experienced attorney.

For help or answers to will and estate related questions, you can contact BaskinFleece at 727.572.4545.

The content of this information is courtesy of The Florida Bar and represents general legal advice. Because the law is continually changing, some provisions in this blog may be out of date. It is always best to consult an attorney about your legal rights and responsibilities in your particular case.
Enhanced by Zemanta