What is an estate tax return and why should I file one?

An estate tax return is a form that must be filed with the California Franchise Tax Board after a person dies in order to evaluate and pay taxes on the estate. The executor of the estate (the person responsible for carrying out the deceased’s wishes) is required to file the return. In California, an estate tax return is required for any estate with assets worth $3.5 million or more. This includes both probate (property owned by the deceased, such as a house, land, vehicles, and money) and non-probate assets (items that are not subjected to the usual probate proceedings). Filing an estate tax return is important because it helps ensure that the estate is divided among heirs according to the deceased’s wishes. An estate tax return is also important for tax purposes. The return must be sent to the state Franchise Tax Board in order to calculate the estate’s tax liability. The total amount owed may be applied to the deceased’s estate or to the executor of the estate. If you are the executor of an estate in California with assets of $3.5 million or more, it is important to file an estate tax return. Filing a return will ensure that the estate is divided according to the deceased’s wishes and that any taxes associated with the estate are properly assessed and paid. Failure to file an estate tax return can result in penalties and fines.

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What is an estate tax return and why should I file one?

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