What taxes and expenses must be paid out of an intestate estate?

In Georgia, taxes and expenses must be paid out of an intestate estate prior to any inheritance being distributed. The types of taxes and expenses that could be applicable to an intestate estate include estate taxes, income taxes, funeral and burial expenses, appraisal and executor fees, and administrative expenses. Estate taxes, also known as death taxes, are taxes paid on the value of the decedent’s estate based on the total assets in the estate. In Georgia, the estate tax rate is determined based on the size of the estate and ranges from 4 percent to 16 percent of the estate’s value. Income taxes must also be paid out of the intestate estate. Georgia state income taxes are due on any income earned during the decedent’s tax year prior to their death. Federal income taxes are also due on any income made prior to the decedent’s death. Funeral and burial expenses are also considered expenses that must be paid out of the intestate estate. Georgia law requires that these expenses be paid first from any assets proceeds, followed by any unsecured debts of the decedent. In addition, all necessary appraisal fees and executor fees must be paid out of the intestate estate prior to inheritance distribution. These fees are typically based on a percentage of the estate’s total value. Finally, other administrative expenses (like legal fees, accounting fees, etc.) must be paid out of the intestate estate. If there is not enough money in the estate to cover all of these expenses, the court may order that those expenses be paid out of the inheritance proceeds.

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What taxes and expenses must be paid out of an intestate estate?

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