Losing someone you care about is already tough and dealing with their financials afterward can be an added challenge. A common question we get is: “Do I need to pay my loved one’s taxes after they’ve died?”
As Florida estate planning lawyers, we help families understand and handle these situations with kindness and clear advice. Let’s explain what happens when someone dies—and who is responsible for their taxes.
What Happens to Someone’s Taxes After They Die?
Many people think taxes stop when someone dies, but that’s not true. The IRS and sometimes local tax offices still need final tax returns. The IRS explains this clearly in their official FAQ for deceased taxpayers.
When a person dies, their taxes don’t go away. The IRS and the state tax authorities expect tax forms for the year they passed. Often, their estate must also take care of other taxes.
The good news is you usually aren’t personally responsible for a deceased relative’s taxes—unless you’re an appointed executor of their estate or you share the tax responsibility. Their estate typically pays the taxes using available money.
What is an Estate?
An estate is everything a person owns, like bank accounts, houses, cars, and retirement savings. When someone dies, these things are collected, valued, and used to pay any debts or taxes they owe.
This is usually done through a legal process called probate, unless the estate was set up with a trust or other ways to avoid probate.
A personal representative (or executor) handles this process. Their tasks include:
- Filing the final tax return
- Paying any taxes owed
- Giving the remaining assets to the people who inherit them
If there isn’t enough money to pay all debts and taxes, some property may have to be sold.
What Tax Returns Need to Be Filed After Someone Dies?
At least one tax return must be filed after a person dies. Sometimes, more returns may be needed depending on their financial situation.
1. Final Individual Income Tax Return (Form 1040)
This tax return is for income from January 1 up to the date of death. It must be filed by the usual tax deadline the year following the deceased person’s death.
The personal representative usually files it. If the spouse is still alive, they can file a joint return for that year.
2. Estate Income Tax Return (Form 1041)
If the estate makes money after someone dies, like interest or rent, it might have to file this tax form.
This is required if the estate earns more than $600 during the process of handling the estate.
3. Federal Estate Tax Return (Form 706)
You only need to file this if the estate is worth more than $13.99 million in 2025. Most estates don’t have to file it.
Florida doesn’t have a state estate or inheritance tax, making things easier for families there. You can check this on the Florida Department of Revenue.
What If You’re the Executor or Personal Representative?
If you’re chosen as a personal representative in a will or by the court, you have some duties. These include:
- Collecting financial documents
- Filing required tax forms
- Paying debts in the correct order
- Ensuring heirs don’t get assets until taxes are paid
You won’t pay these taxes with your own money. Instead, you use money from the estate to pay them.
Can You Be Personally Responsible for Their Taxes?
When managing an estate, it’s normal to feel unsure about your legal duties. If you’re a personal representative, you might worry about what happens if there are problems—especially with taxes or creditors.
Usually, you are not responsible for someone else’s tax debts unless:
- You co-signed or shared the debt
- You took estate assets before paying debts
- You handled the estate incorrectly or skipped legal steps
That’s why it’s important to work with a Florida estate planning lawyer. They help you follow the law, avoid errors, and protect yourself.
What Happens to Back Taxes When Someone Dies?
If the IRS or Florida Department of Revenue was already trying to collect unpaid taxes when your loved one died, that debt doesn’t go away. The estate has to take care of it.
Here’s what usually happens:
- The IRS files a claim in probate court.
- The estate pays the debt before giving money to heirs.
- If there isn’t enough money, the estate might negotiate a payment plan or settle for less.
Sometimes, the IRS agrees to a payment plan or lower amount if the estate doesn’t have much money.
Remember, you aren’t personally responsible unless you give out estate money before paying off debts.
What If There’s No Money in the Estate?
This happens more often than you might think. If your loved one didn’t have many valuable assets, their estate may be called “insolvent.”
In this case:
- The court pays bills in a set order using whatever money is available.
- Taxes and funeral costs usually get paid first.
- Any unpaid debts, including taxes, are canceled if there’s no money left.
Family members do not have to pay these debts. This includes taxes.
What About Joint Accounts or Property?
Joint assets are handled differently. For example:
- A joint bank account usually goes to the surviving owner.
- A home owned as “joint tenants with right of survivorship” goes straight to the surviving owner.
These assets often avoid probate. But if there are taxes or debts, creditors might still try to claim some of these assets. It depends on how they are titled and managed.
Can Life Insurance or Retirement Accounts Be Accessed?
Usually, no. Life insurance policies and retirement accounts with named beneficiaries go straight to those people. They don’t become part of the estate—unless the estate itself is named as the beneficiary.
This means they are generally protected from estate taxes and debts.
However, there are exceptions. If you’re not sure, ask a Florida estate planning lawyer to check the account.
How Long Do You Have to File Taxes for a Deceased Person?
The IRS deadlines stay the same. The final 1040 tax return must be filed by April 15 of the year after the person dies.
If the estate earns income, a 1041 tax return is due by April 15 of the year after the estate starts being managed.
Estate tax returns (Form 706) need to be filed within nine months of death, unless you ask for more time.
Filing late can lead to penalties or interest. We help clients meet all deadlines to avoid extra fees.
How Can a Florida Estate Planning Lawyer Help?
Dealing with taxes is just one part of managing an estate. You also need to handle legal paperwork, divide assets, pay off debts, and follow court rules.
A lawyer can help you:
- Fill out the correct tax forms
- Avoid personal responsibility for debts
- Submit court documents correctly
- Protect yourself from creditors
- Speed up the estate process
You don’t have to do this alone. Our team deals with estate issues every day. We can assist whether you’re handling probate, managing a trust, or dealing with a family member’s taxes.
What to Do Next
Before you start giving out any assets, make sure the estate is properly reviewed and organized. Keep good records, save all communications, and talk to professionals when needed. Every estate is different, so getting legal advice early helps avoid tax problems.
Here’s a simple list to help you begin:
- Get death certificates (you’ll need several copies)
- Find the will or trust, if there is one
- Identify the personal representative (if not already done)
- Collect tax and financial documents
- Contact a Florida estate planning lawyer
The sooner you act, the easier it will be. Tax offices and creditors are more cooperative when you communicate quickly and clearly.
Why Getting Help From an Attorney Is Important
In Florida, you don’t have to hire an attorney to handle estate matters—but having one can make things much easier. Dealing with tax rules, probate court, and IRS steps can be stressful without expert help.
Our Florida estate planning lawyers guide you through:
- Filling out IRS forms correctly
- Working with accountants or tax experts
- Talking to creditors and family members
- Following state and federal laws
We aim to reduce your stress, speed up the process, and protect the estate—and you—from costly mistakes.
Estate and tax issues can be confusing. There’s lots of paperwork, deadlines, and legal rules. Missing something could slow things down or cause problems for you personally.
Our Florida estate planning lawyers support you every step of the way. We’ve helped families across the state handle taxes, pay off debts, and carry out their loved ones’ wishes clearly and confidently.
With legal help, you get peace of mind and avoid common mistakes that waste time and money.
Contact Our Florida Estate Planning Lawyers for a Free Consultation
At Best Legacy Lawyer, we believe every family should have an easy and worry-free estate process. For many years, we’ve helped Florida families handle estates, trusts, and taxes with care and confidence.
We understand both the legal side and the emotional stress you’re going through. We’ll handle the legal work so you can focus on healing.
We don’t charge any fees upfront. Your first consultation is always free. If you need help with estate taxes, probate, or trusts, we’re here to assist you.
Contact us today to book your free consultation.
