The administrator of a decedent’s estate is responsible for overseeing the distribution of assets per a will or state intestacy laws. Additionally, the administrator is responsible for ensuring all the decedent’s outstanding debts are settled from the estate’s assets.

Since state and federal estate tax rules are complicated, an experienced probate attorney can provide guidance about the estate tax in Lake St. Louis probate cases.

Initiating the Probate Proceeding

Before estate taxes are paid, an interested party must initiate the probate proceeding. When a will exists, the document typically names an administrator to oversee the estate. The court can also appoint an administrator under Missouri Revised Statutes § 473.110 if a designated personal representative is unsuitable for the position.

Upon the decedent’s passing, the estate executor or an interested party is required to file an application for letters testamentary or letters of administration with the probate court under Mo. Rev. Stat. § 473.017. The filing should include relevant information and documentation, such as an inventory of the estate’s assets.

The responsible party must file any copies of the decedent’s will within one year of their death, according to Mo. Rev. Stat. § 473.050. The administrator of the estate could file a small estate affidavit under Mo. Rev. Stat. § 473.097 provides a simplified probate process, depending on the estate size.

Federal and Other Estate Taxes

Administrators must settle the estate taxes and other financial obligations of the decedent in probate, including the payment of any necessary fees or taxes imposed on the estate or its assets, according to Mo. Rev. Stat. § 145.051.

The state does not impose a separate estate transfer tax, which is sometimes referred to as a death tax, but Mo. Rev. Stat. § 145.011 stipulates the executor must pay federal estate taxes for asset transfers.

The executor could also have to file federal tax returns for the estate under certain circumstances, as required by Mo. Rev. Stat. § 145.481. When the estate earns income, such as from stock ownership or other assets, the state imposes a fiduciary tax on income earned by the estate. A fiduciary income tax return is necessary for most estates within the state and for nonresident estates for income earned in the state that exceeds $600.

The estate is also responsible for applicable real estate or property taxes owed by the decedent. State law could also impose taxes upon the transfer of certain assets that pass to a beneficiary automatically without probate, such as life insurance proceeds. Other states can also impose tax obligations on estate property that is not situated within the state, according to Mo. Rev. Stat. § 145.041.

The executor must file the final state and federal income tax returns for a decedent under Mo. Rev. Stat. § 143.501. The due date for the filing is the same deadline as if the decedent had not passed.

An experienced lawyer in Lake St. Louis could navigate the complex rules for estate taxes and make sure all forms are filed correctly and on time.

Get Answers From an Attorney in Lake St. Louis for Questions About Estate Tax in Probate Cases

When an estate owns valuable assets in another state, an attorney can help you understand the implications of complex state and federal tax laws. The imposition of estate taxes can vary depending on factors such as the value of the property, type of assets owned, and the length of ownership.

Call today to request a consultation with an attorney for advice about estate tax in Lake St. Louis probate cases.