(856) 439-6223Probate is a legal process that accompanies the distribution of a person’s estate to legal heirs and beneficiaries after their death. Not all assets go through probate, such as those held in a living trust or joint tenancy arrangements.
However, many estates will go through probate. Depending on the extent of the estate, the assets and debts involved, and how these elements were structured, the process can be costly and time-consuming. Taxes will need to be paid among the various steps in probate.
When you have questions about the taxes involved in the Moorestown probate process, you should speak with an attorney who can offer advice tailored to your situation. An experienced probate attorney has the knowledge and resources to help you navigate the complexities of probate.
How Taxes Work in Probate
When it comes to taxes involved in the Moorestown probate process, the state does not require any estate taxes be paid. However, this does not relieve the potential obligation to pay federal estate and inheritance taxes.
Once the owner of the estate passes away and after the executor has been appointed, they must submit a federal estate tax return within nine months. Closing the estate may only begin after any required federal taxes are fully satisfied, which can sometimes take up to a year.
Some individuals may be required to pay inheritance taxes. Certain people are not required to pay inheritance taxes depending on their relationship to the decedent. For example, the decedent’s children, spouse, grandchildren, or parent who inherits from them will not be required to pay inheritance taxes.
Key Steps in the Probate Process
The probate process begins when the owner of the assets passes away. Through the probate process, the decedent’s property is identified and appraised, and outstanding debts are paid.
The decedent’s remaining assets can be distributed according to their wishes after fees and estate taxes involved in the Moorestown probate process are satisfied. If the decedent dies without a will, their estate will go through probate and be distributed to surviving relatives based on the state’s laws of intestate succession.
When the decedent left behind a will, it will be submitted to the court, who can ensure it complies with the legal requirements for validity. The will should name an executor to handle the administration of the state, otherwise, the court will do so.
It is the executor’s job to notify heirs and beneficiaries to the decedent’s estate and inform them about probate proceedings. Beneficiaries should receive a copy of the will and details about the assets to which they are entitled when the estate is eventually distributed.
The executor will need to determine the value of the decedent’s assets and their debts, such as unpaid taxes or loans. Once these issues are resolved, the executor must distribute the assets according to the will’s provisions or intestate laws if the decedent died without a will.
Before closing the estate, the executor will need to provide a report to the court that details all of these activities. Then, the court will relieve the executor of their duties.
Depending on how the decedent organized their estate plan, some assets will avoid probate altogether. For example, assets held in a living trust are not subject to probate.
A Moorestown Probate Attorney Can Answer Your Tax and Estate Planning Questions
If you are getting ready to establish your estate plan, you may be able to structure your assets in such a way that they bypass probate altogether. Should you already be facing a situation involving probate, having an attorney by your side at every stage is invaluable. A lawyer at Nesevich Law could help you overcome any difficulties while ensuring all procedures are properly executed.
The taxes involved in the Moorestown probate process are just one aspect of estate planning to consider. If you are dealing with the loss of a loved one and need legal assistance or want to arrange for the future of your own estate, an attorney can help.
Contact our office today to schedule your one-on-one legal consultation.