What is the status of taxes in an intestate estate?

In Washington, taxes on an intestate estate are handled much the same way as taxes on an estate that has a valid will. The executor of the estate is responsible for filing the appropriate tax forms and paying any taxes due. In general, federal and state estate taxes might be due on the estate if the value of the assets exceed certain thresholds. The first step is to file a federal form 706, the federal estate tax return. This form must be filed if the value of the estate is greater than $11.58 million in 2020. This may include property such as real estate, stocks, and other investments, but does not include life insurance proceeds, annuities, or other exempt assets. In Washington, the state estate tax return, form 706-WA, must be filed if the value of the estate is greater than $2.193 million, as of January 2020. The state estate tax rate is progressive, meaning the rate increases as the value of the estate increases. Additionally, there may be income taxes due on income generated by the estate assets prior to the death of the decedent, such as investments with dividend or interest income. In summary, taxes on an intestate estate in Washington are handled in much the same way as taxes on a valid will. The executor of the estate is responsible for filing the appropriate tax forms and paying any taxes due.

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What is the status of taxes in an intestate estate?

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