If I’m a personal rep for an estate, do I have to flie taxes at the end of the year and, if so, does that mean that the money need to be held just in case?
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If I’m a personal rep for an estate, do I have to flie taxes at the end of the year and, if so, does that mean that the money need to be held just in case?
We just sold an house and the proceeds are to be spilt between people listed in the Will. I plan to open and estate bank account so I can deposit the check and then distribute it to eact person. I don’t want to pay out the money then it comes back the money is owed for taxes or something.
Asked on March 27, 2013 under Estate Planning, Maryland
Answers:
Catherine Blackburn / Blackburn Law Firm
Answered 11 years ago | Contributor
You shold have a lawyer help you with a probate estate. These matters are too complicated to handle without a lawyer.
I do not know what kind of estate taxes are imposed by the State of Maryland. There are no federal estate taxes unless the value exceeds $5 million.
However, I suggest you do not distribute any proceeds without making sure that all the estate affairs are in order. This includes gathering claims from all the possible creditors, paying the legitimate claims, fighting about illegitimate claims, paying the lawyer, paying the personal representative, preparing and paying any state or federal taxes, etc. Only when all these items are complete, can you distribute funds to beneficiaries.
I hope this helps.
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