What is an “income in respect of a decedent”?
In Washington, an “income in respect of a decedent” is money that an individual earned prior to their death, but was not paid out until after they died. This income could come from things such as unpaid wages, commissions, bonuses, pension benefits, annuities, and other sources of compensation. Essentially it is income that would have been received had the individual still been alive. When a person dies in Washington, their estate will be liable for any taxes owed on this income, regardless of when the taxes are paid. However, the estate can sometimes use certain deductions to minimize the tax liability. These deductions can include any unreimbursed expenses, debts of the decedent, and any federal, state, or local taxes owed on the income. Inheritance law in Washington is complicated, so it is a good idea to consult with a lawyer or tax professional if you have any questions regarding an income in respect of a decedent. They will be able to help you understand the laws and how they apply to your particular situation.
Related FAQs
How can trust assets be protected from creditors?What is a codicil?
What is a trust deed?
What is the rule against perpetuities?
What are the roles of a trust officer, trust attorney, and trust accountant?
What is a self-settled trust?
What is a construction trust?
What is a perpetual trust?
What is a trust modification agreement?
What is an estate freeze?
Related Blog Posts
Understanding the Basics of Inheritance Laws: A Guide to Successfully Navigating State and Federal Statutes - July 31, 2023How to Ensure Your Estate Plan Reflects Your Wishes Through Inheritance Laws - August 7, 2023
Protect Your Rights as a Beneficiary: Understanding Your Legal Rights After Beneficiary Inheritance - August 14, 2023
Comprehending the Duties and Responsibilities of Executors of Estates: How to Properly Administer an Estate and Fulfill Inheritance Law Requirements - August 21, 2023
Maximizing the Benefits of Inheritance Law for Family Heirs of Estates - August 28, 2023