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

In New York, when a person dies without a valid will (intestate), the assets of their estate must be distributed according to the state’s intestate succession laws. Before the estate can be passed to the beneficiaries, any taxes and other expenses must be paid out of the estate assets. The most common expense is funeral costs. This includes the cost of the casket, burial plot, headstone, flowers, etc. The cost of the funeral must be paid from the estate before any other expenses or distributions can be made. The estate may also be responsible for any debts that the deceased person accrued while alive. These debts must be paid before any of the estate can be distributed to beneficiaries. This includes credit card debt, mortgages, car loans, medical bills, etc. The final expense to be paid from the estate is state and federal taxes. These may include estate taxes, gift taxes, and any income taxes due on the assets held in the estate. The exact amount depends on the size of the estate and will need to be calculated by a knowledgeable tax professional. Once taxes and all other expenses have been paid, then the remainder of the estate assets can be distributed to the beneficiaries of the estate according to state intestacy laws.

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

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