If you are preparing for the probate process as the executor of your loved one’s estate, there are different issues you need to consider, from notifying creditors to distributing assets. However, you could have to deal with estate taxes, depending on the value of your loved one’s estate.
If you need to pay estate taxes, it is vital to understand your obligations and the way in which you can approach filing an estate tax return.
Paying estate taxes in Washington State
According to the Department of Revenue, an executor must file an estate tax return if the gross estate surpasses the filing threshold ($2.193 million in 2021). If a federal estate tax return is necessary, as the executor you have to include a copy of Federal Form 706 when you file estate taxes in Washington State.
Executors must file an estate tax return and make an estate tax payment within nine months after the decedent dies, or else interest will accumulate. If you need additional time to file an estate tax return, you can apply for an extension.
Applying for an extension to pay estate taxes
The DOR reports that executors can file for an extension that gives them six additional months to file an estate tax return in Washington State. However, this extension does not give executors more time to pay estate taxes that are due. The DOR suggests that executors include an estimated tax payment when they file for an extension.
The probate process is often very complex and can generate confusion as well as negative emotions. Make sure you understand your options and work through probate carefully.