Personal representatives have a wide range of responsibilities and obligations under Arizona probate law. One such obligation is paying taxes; and as most people know paying taxes is not always straightforward. There are a host of strategies to minimize tax obligations, and overlooking such strategies can significantly diminish an estate’s value. As such, Arizona probate law allows personal representatives to seek counsel on tax issues.
Personal representatives have many tax issues to consider. First, they must file the decedent’s final federal income tax return. Second, because they are dealing with an estate, which is a separate tax entity from the decedent, personal representatives may also have to handle estate taxes. In addition to federal tax obligations, personal representatives are also obligated to handle state tax obligations. Property, real estate and business tax issues often come up as well; and personal representatives must deal with these issues accordingly.
Many personal representatives have very little experience with AZ probate law and the relevant tax issues that come up. This is particularly true when it comes to the estate tax. Because slight differences in how tax issues are approached can have a significant impact on the estate, it is always best for personal representatives to recruit counsel to help with probate. An Arizona probate lawyer is best qualified to help personal representatives make proper tax decisions.