Because the estate’s entire tax liability is generally due to be paid to the IRS and the Pennsylvania Department of Revenue within 9 months of a person’s death, executors can find themselves without sufficient liquidity to pay for such inheritance taxes and estate taxes.
These taxes are also often due just when the executor is paying for lifetime tax liabilities, funeral expenses and various administrative expenses.
How do you plan for such tax payments to avoid interest and penalties?
I recently did two articles covering these issues.
To read more about paying for federal estate taxes and Pennsylvania inheritances taxes, click these links:
Paying Inheritance and Estate Taxes Part One
Paying For Inheritance and Estate Taxes Part Two
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