What is an Estate of Deceased Used For?
Frequently Asked Questions | FAQs
An estate of deceased is used to pay debtors and, after paying all debts, distribute the remaining funds to the decedent’s chosen beneficiaries. An executor is an official representative of the person’s estate who obtains an tax id number and then bears full responsibility for overseeing and fulfilling the wishes of the decedent regarding assets. The Internal Revenue Service (IRS) requires executors of estates to file specific forms related to taxable income. After filing the required tax forms, the estate administrator must obtain a tax ID number (EIN number).
You may not realize that your heirs or beneficiaries are legally responsible for paying any outstanding debts after your death. The executor of the estate may need to sell some of your estate’s assets to pay all previous debts. It is important to pay every debtor to ensure that your beneficiaries receive all the designated funds and assets that are part of your estate.
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