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Should you wait until after taxes are paid as in state/fed?


All bills have been paid.

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Yes, of course after the taxes are done.
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cwillie Dec 2021
In Canada we were advised to apply for a clearance certificate from Revenue Canada, basically a document saying that they are satisfied that all taxes owing have been paid. Is there and equivalent from the IRS?
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I closed my dad’s after I was sure all bills and taxes were handled, about 8 months after he died. Lawyer told me I could wait for the one year mark but that would only be a formality
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Most States give one year after death before closing an estate unless there are legal issues to address.
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I won't be closing out anything until the house needs no repairs before selling and the taxes are done. My mother died in late July, so things will still be open through April at least.
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I would. There is quite honestly no worry about how long it is open. Sometimes something shows up that is a surprise from a doctor bill/hospital bill and etc. You will have to pay the estate taxes and the last individual taxes. I closed the last account before taxes but that is because it was clear to me that none would be owed,and I was sole inheritor, and would have paid/would be paying anything unexpected that comes through as such. If you have used an attorney at all (I used an hour of time just to be certain I was doing everything correctly) you can ask this question of that person. The estate pays for the Trust and Estate attorney's advice. Igloo is so correct in that there may be things that you are unaware of that may require filing or fulfilling in your individual state.
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Do you need any paper work to close the estate bank account? It still has money in it that i would receive since there is no one else.

They did make me get a EIN to open the account not sure what that will be used for if anything?
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JoAnn29 Dec 2021
For me, when Probate was done and money was disbursed to the beneficiaries from the estate acct, and then it was closed. This was the final thing that needed to be done. So, if you are not using a lawyer and Probate is closed, write a check to yourself and close the estate acct. But don't do it until probate is closed.
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Just want to say something in regards to what Alva said.

I am of the understanding that debtors are given a chance to place a claim on the estate. That's why probate can't be closed for a certain time, to give creditors the time to place a claim. I didn't need to do it but sometimes a notice needs to be placed in a newspaper making debtors aware that someone has died and any claims should be sent to the Executor. Not sure if this is done anymore with the scams that go on. You as the Executor should have made sure nothing was owed. Once Probate is closed and money distributed, I don't think a creditor can make a claim on the estate. They can try, but you don't need to pay them.

Knowing Mom was going to need Medicaid eventually, I made sure all her bills were paid. To the point that one medical billing person was surprised I cared. (I did collections for a living) I had gotten the Medicare statements but nothing from the provider so I called. Seemed the acct was on hold because they needed to resubmitted paperwork because of the wrong code. Once they received their money a statement was sent and I paid it. Mom owed no one when she went on Medicaid.
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When I spoke with the bank they suggested 2 years. After one year I moved most of the money out and just left a token amount in case something comes up.
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Do not legal expect advise here, but my experience has been to keep the estate until all taxes have been paid and accepted. Consult an attorney.
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I (executor)closed out my moms checking after i knew all her bills were paid and taxes were recd by IRS (I did let some time pass w IRS was not in a hurry )and both my sister and i split the remainder. I closely followed all my moms lawyers instructions. However, I was also told if any bills or issues came up later, both my sister and i were responsible to cover it. (because there was extra $ left over)
If I had kept her checking open with those funds and it created any interest that would have to be reported. I would have to file again for the next tax year. you should definitely wait if taxes are not squared away. i had moms taxes done by a CPA and i knew returns had been accepted since filed electronically. again like another posted this isnt legal advice and i followed a lawyers instructions.
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