Trustate News and Resources

This is often a huge question mark for so many executors. As the old adage goes, the only thing certain in life are death and taxes, so yes, the deceased’s existing tax reporting & payment obligation shifts to become an obligation of the estate. This means that the legally authorized representative of the estate, i.e., the Executor, Administrator or Personal Representative, is responsible for timely filing the decedent’s income tax returns (as well as for any back-returns that the deceased failed to file during his/her lifetime), and making payments from the estate for any taxes owed.

Graegin loans are loans that can be used to pay estate tax and estate administration expenses. Under the right circumstances, a Graegin loan can provide low-liquidity estates with the ability to both defer and reduce estate tax liability.

A 6166 election allows an executor to extend payment of part or all of the portion of the estate tax that is attributable to a closely held business interest. In this article, we dive into the details of what it is, and when to use it.