Tips for Those Have to File Taxes After a Loved One's Death: Probate
After someone passes away, it is extremely important to send in a final tax return. If an individual passes away over the course of the year and he or she received income during that same period, then it's final tax return must be filed, either by the heirs or an executor. If your spouse passes away during the year and you're curious about filing a final tax return, you'll need to consider which option gives more beneficial tax treatment; married filing jointly or married filing separately. You'll need to do different calculations in order to determine this.
Money that is received from IRAs, life insurance annuities, mutual fund holdings and other pensions may have significant tax implications for you that need to be properly addressed. Appropriate tax planning is essential to accomplish this. When taxes become due and there is no planning done in advance, this can put your beneficiaries in a difficult situation.
Getting financial advice in the midst of the chaos that is losing a loved one can seem like just one more thing to worry about. However, a brief meeting with a financial professional and an estate planning attorney can help to clear up many of the most common issues that could affect your future significantly. Make sure you set aside time to carefully consider the pros and cons of working directly with a lawyer.