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Law Offices of Amy R. Turos.

Takeaways:

  • State and federal taxes may need to be filed for the deceased person depending on whether he/she was working, as well as for any owned real estate property
  • Probate costs such as court and attorney fees are normally deducted from the estate. Even if the estate does not cover attorney costs, it is in the best interest of the personal representative to hire an experienced estate planning attorney.
  • All creditors must be paid before the probate can be closed.

How Does the Personal Representative File Federal And State Taxes On Behalf Of The Deceased?

Although the laws are always constantly changing in Ohio, currently, there is no estate tax for estates that are valued at less than $338,333. That means there’s nothing to file.

At the federal level, it’s even higher. Currently, the federal IRS estate value has to be over $12,060,000 in the year 2022. Thus, unless the estate is above these numbers, filing taxes is not necessary.

However, there are different kinds of taxes. If an individual was working that year and they passed away, we might look into filing an income tax return if we believe there are going to be returns to the beneficiaries.

In these cases, we team up with a CPA or tax preparer to determine whether there is going to be a tax return or estate tax. In fact, we always contact a CPA or tax preparer to confirm whether we need to file based on the current laws.

Does The Executor Or Personal Representative Have To Pay Ongoing Expenses Of Administering The Estate Or Probate Costs In Ohio? How Are Those Payments Made?

In the state of Ohio, the executor or the personal representative does have to pay ongoing expenses of administering the estate. The deceased is responsible for his/her estate and the estate is supposed to pay for itself.

For example, there are filing fees, court costs, and attorney fees that need to be paid and get paid out of the estate. If somebody pays out of pocket, they can ask for reimbursement from the estate if there’s enough money in the estate.

Of course, there are different types of probate cases. But when it comes to a full administration probate case, the attorneys, administrator, appraiser, and court are paid out of the estate — as long as there’s enough money within it to cover the costs.

What Can The Personal Representative Do If There Is Not Enough Money In The Estate To Cover Administrative Costs?

Even if there are insufficient funds in the estate to cover administrative costs, the best thing is to always contact an attorney.

In the state of Ohio, certain claims are superior to others. We have to look to see if it’s a superior claim being asked by a creditor. If the claim has been filed at the probate court, then we have to address it. However, in Ohio there are very strict laws and regulations on when a creditor can file against a probate case.

All creditors must be paid before probate can be closed.

So, if the case becomes insolvent, which means it owes way more than what can be repaid with the value of the assets or estate, and then we will file for insolvency. But first, we need to figure out what claims we need to address and what claims can be discarded.

How Long Does The Executor Or Personal Representative Have To Probate An Estate In Ohio?

Keep in mind there are different types of probate cases. Other kinds of probate cases are much quicker and faster than a full administration. If we are talking about a full administration, there are strict deadlines that need to be filed per Ohio Revised Code.

As soon as we file for full administration, we have to file an inventory within 90 days. Then within six months, the personal representative has to file the final and distributive account—how the assets were distributed. If we have to do an Ohio state tax return, or federal state tax return that has to be done within nine months of filing a full administration.

To settle probate in the state of Ohio that applies to a full administration–a summary relief or short form release–an executor can file anywhere from 10 to 15 years after the person passed. There is no statute of limitations to filing a probate case. But once you file it, certain restrictions and deadlines need to be followed through the probate court.

Does An Executor Or Personal Representative Need The Counsel Of An Experienced Ohio Estate Planning Attorney When Administering An Estate?

It’s always in your best interest to consult an experienced Ohio estate planning attorney.

Most of my clients might experience estate-related issues once or twice in their life. I have had many of them then try to tackle the probate process themselves and do it incorrectly. A lot of times with Google and all the DIY forms, clients think they can do it until they hit a roadblock. Then they call us to fix it.

We, however, do this every single day with multiple clients. Because we at Ohio Family and Civil Law are very experienced in this area and know the requirements, we know when everything is due, and how to get it done efficiently and effectively. We also are aware that every county has its specific forms and requirements.

A lot of times I see clients not aware of what is and is not a probate asset. When filling out forms, a lot of clients even commingle probate assets and non-probate assets. Because it’s not their job to decipher what’s probate and non-probate, the court clerks don’t know.

There are probate assets and non-probate assets. Probate assets are the assets we have to address through the probate court. Non-probate assets are where we don’t need the court. Thus, we can transfer the asset to the beneficiary without a court order or involving the court.

We at Ohio Family and Civil Law can get it done right the first time instead of trying to backtrack and fix things that cost you time, money, and resources.

For more information on Filing Estate Taxes On Behalf Of the Deceased, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (330) 222-3898 today.

Amy Turos, Esq.

Call Me For Your Free, 30 Min Phone Consultation
(330) 222-3898