Tag: Executor liability

Losing a parent brings emotional challenges, but also potential IRS tax issues that can be costly and complicated. Key points include: outstanding debts don’t disappear, final and estate tax returns are required, executors can be personally liable, joint accounts and property with tax liens can be affected, unreported income triggers scrutiny, inherited IRAs have mandatory withdrawals, and Social Security overpayments must be returned. Additionally, gifts over a certain amount may trigger gift tax, and life insurance payouts can inflate an estate’s