When Are Estate Taxes Due?

By | October 9, 2019

When someone dies, somebody must take on the tasks of completing his or her estate. An estate tax or death tax is paid out of the decedent’s estate after his or her passing.

Role of the Executor

The executor has numerous important jobs. She or he identifies the possessions of the estate and safeguards them. She or he is accountable for alerting recipients, heirs and known lenders of the decedent. She or he might also need to publish a public alert of the decedent’s death and his/her appointment.

Filing of the Final Income Tax Return

The executor is also accountable for submitting the decedent’s final tax return and for paying any taxes the decedent owes. The administrator may be held personally responsible if any underpayments are made to the Irs. He or she may be required to pay these taxes as well as penalties and interest if incorrect details and underpayments are made to the Internal Profits Service. This tax return covers the period between the start of the year until the date of the decedent’s death throughout the same year. The return filing date is the very same when it comes to living taxpayers. If the decedent was married and filed jointly, the final return might cover the decedent’s income and reductions up until death and the enduring spouse’s yearly quantity of earnings and deductions.

Federal Estate Taxes

Federal estate taxes are only payable when the decedent’s estate is large. At the time of publication, estates are just subject to the federal estate tax if they are valued at more than $5.49 million and after that only to the amount that they surpass this figure. The estate tax rate may be up to 40 percent. These taxes are due when the executor files the estate’s estate tax return. This is finished by filing Type 706. This form is due 9 months after death. If the decedent made any large presents, the excess over the gift tax exemption is re-figured to determine the suitable quantity of estate taxes.

Computing Federal Estate Taxes

The estate tax is calculated from the decedent’s gross estate. This includes the overall value of the estate that thinks about the decedent’s land, property, services, financial investments, checking account and other assets owned at the time of the decedent’s death by the decedent.


An extension for the federal estate tax return may offer an additional six months. A 3-month extension is typically given if the quantity of estate tax that the estate owes is more than the cash in the estate. This extension allows for the payment of estate taxes one year after the decedent’s death rather of the common 9-month timeframe. This additional time permits the administrator to liquidate other possessions in order to produce the funds essential to pay the overall quantity of estate taxes due. Other extensions may grant an extra year to extend the quantity of time to pay, as much as a maximum of 10 years. The executor may need to develop unnecessary difficulty or a reasonable cause to justify why the tax was not made in a timely manner.

Legal Assistance

Due to the threat that an executor has if any mistakes are made, it is necessary that he or she look for qualified support. This might include working with an accountant to handle the filing of income tax return. She or he may also consult with a monetary advisor for support. These steps may assist decrease taxes due on the estate or to clarify if any estate taxes are due.