Quick overview
Filing the deceased’s final individual tax return and any required estate tax returns is one of the executor’s core duties. This checklist gives you the specific documents, forms, deadlines, and practical steps to complete returns accurately, avoid penalties, and preserve liquidity for estate expenses. It reflects current IRS guidance and estate‑tax filing basics as of 2025 (see IRS Publication 559 and IRS estate tax pages).
(See IRS Publication 559: Survivors, Executors, and Administrators: https://www.irs.gov/pub/irs-pdf/p559.pdf and IRS Estate Tax Information: https://www.irs.gov/estate-tax.)
Why this matters
Timely and accurate tax filings protect the estate from interest and penalties, create a clear record for beneficiaries, and help executors meet fiduciary duties. In my 15 years helping estates, the estates that follow a written checklist close faster and face fewer post‑finalization audits.
Step‑by‑step executor’s checklist
Follow these steps in order, adapting timing to the date of death and the estate’s complexity.
- Obtain certified death certificates
- Order multiple certified copies from the state vital records office right away; you’ll need them for financial institutions, Social Security, and the court.
- Locate the will, appointment papers, and court documents
- Confirm your authority as executor (letters testamentary or letters of administration) before accessing accounts or filing returns.
- Freeze unnecessary accounts and safeguard assets
- Close online access for the deceased’s accounts and secure physical assets (titles, deeds, safe deposit boxes).
- Gather tax records and financial documents
- Prior year tax returns, W‑2s, 1099s (interest, dividends, retirement distributions), brokerage statements, bank statements, mortgage information, business records, and documentation of gifts or lifetime transfers.
- Establish an estate bank account (if required)
- You’ll need a fiduciary account to pay estate costs and to receive income generated by estate assets. Keep exhaustive records of all deposits and disbursements.
- Prepare and file the decedent’s final individual income tax return (Form 1040)
- The final Form 1040 covers income from January 1 through the date of death. Income that accrues to the estate after death (e.g., interest) is reported on the estate’s returns, not the decedent’s personal 1040. If a surviving spouse files jointly for the year-of-death return, consult a tax advisor for filing options. (See IRS Form 1040 guidance: https://www.irs.gov/forms-pubs/about-form-1040.)
- Determine whether an estate tax return (Form 706) is required
- Not every estate files Form 706. An estate must file Form 706 if the gross estate plus adjusted taxable gifts meets or exceeds the federal filing threshold for the year of death. Because exemption levels change, don’t rely on memory—confirm current thresholds on the IRS estate tax page. If Form 706 is required, it’s due nine months after the date of death (see below on extensions). (See Form 706 info: https://www.irs.gov/forms-pubs/about-form-706 and IRS Estate Tax: https://www.irs.gov/estate-tax.)
- File fiduciary income tax returns for the estate (Form 1041) when necessary
- Estates that generate income after death may need to file Form 1041. This return reports income generated by estate property during the administration period and accounts for distributions to beneficiaries.
- Pay taxes and request extensions if needed
- The final Form 1040 follows normal individual deadlines (generally April 15 of the year following death). Form 706 is due nine months after death; you can request a six‑month extension for Form 706 using Form 4768. For the estate fiduciary return (Form 1041) and personal returns, use the applicable extension forms and pay estimated taxes to reduce penalties. (See IRS Form 4768: https://www.irs.gov/forms-pubs/about-form-4768.)
- Keep beneficiaries informed and document every step
- Maintain a ledger of distributions and communicate expected timing and tax consequences to beneficiaries. Save copies of all filings, correspondence, and receipts — these reduce later disputes and help with possible IRS inquiries.
Essential documents to assemble
- Certified death certificates (multiple copies)
- Last five years of tax returns (when available)
- W‑2s, 1099s, K‑1s, and broker cost and sale reports
- Bank and brokerage statements showing balances and recent activity
- Real estate deeds, mortgage statements, and property tax bills
- Life insurance policies and beneficiary designations
- Title to vehicles, safe deposit inventory
- Records of gifts or transfers, trust documents, and prenuptial agreements
Tip: Request IRS transcripts if prior returns are missing (IRS Get Transcript tool) and obtain account statements directly from financial institutions.
Forms and deadlines (concise table)
| Filing | Typical form | When due | Notes |
|---|---|---|---|
| Final individual return | Form 1040 | Generally April 15 following year of death | If filing late, file an extension and pay expected tax to avoid penalties. See IRS Form 1040 guidance. |
| Estate tax return | Form 706 | 9 months after date of death | Six‑month extension available via Form 4768. Check current filing threshold on IRS site. |
| Fiduciary income tax return | Form 1041 | Generally April 15 (year after decedent’s death) | Due date aligns with trust/estate accounting year; special rules apply. |
(Always verify exact due dates for the tax year in question on IRS pages cited earlier.)
Common mistakes executors make (and how to avoid them)
- Misjudging the filing threshold for Form 706: don’t assume the estate is exempt—check the IRS filing threshold for the decedent’s year of death.
- Commingling funds: use a separate estate account to avoid beneficiary disputes and tax problems.
- Failing to report income correctly: distinguish between income earned before death (reported on the final Form 1040) and income earned by the estate after death (reported on Form 1041).
- Missing state filings: state estate or inheritance taxes, and final state income returns, may be required. See our site guide on state differences: State-by-State Differences in Estate Tax and Probate Processes: https://finhelp.io/glossary/state-by-state-differences-in-estate-tax-and-probate-processes/
Practical examples from practice
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Example 1: Appreciated investments. An estate held appreciated stocks. We prepared a Form 706 because the gross estate neared the threshold; by documenting alternate valuation election and timely appraisals we reduced the taxable estate value and saved estate tax liability.
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Example 2: Rental income oversight. A family failed to track rental income produced in the months after death. We filed a Form 1041 for the estate and an amended Form 1040 for the decedent’s prior year after assembling late 1099s, avoiding penalties through quick remediation.
Professional tips and tax planning considerations
- Request an estate valuation early: appraisals of real estate and business interests often take weeks and can affect estate tax outcome.
- Consider portability election: if the deceased was married, a portability election on Form 706 can preserve a surviving spouse’s unused federal exemption. See our primer on portability: What is Portability of the Estate Tax Exemption? https://finhelp.io/glossary/what-is-portability-of-the-estate-tax-exemption/
- Use life insurance or liquid assets to pay estate taxes or administrative expenses. (See related article on life insurance and liquidity planning: Life Insurance Trusts: Funding Estate Taxes and Providing Liquidity: https://finhelp.io/glossary/life-insurance-trusts-funding-estate-taxes-and-providing-liquidity/.)
Frequently asked questions
Q: Do I have to file a final Form 1040 even if the decedent had little income?
A: Yes. If the decedent had income that meets filing thresholds or had tax withheld that should be refunded, file the final return. If the decedent had no filing requirement, you’ll usually file a return that shows zero tax owed, but check state rules.
Q: What if I miss a deadline?
A: File as soon as possible. For estate tax, apply for an extension using Form 4768 (if still within the nine‑month window). Penalties and interest can be substantial; consult a CPA promptly.
Q: Can funeral expenses be deducted?
A: Funeral expenses are generally paid from the estate and reduce amounts available to beneficiaries but are not deductible on the decedent’s final Form 1040. Some administrative expenses can be deductible on an estate return or against estate income — document everything and discuss with your tax advisor.
Record retention and post‑closing care
Keep records for at least seven years after estate administration closes. Save tax returns, appraisals, bank ledgers, correspondence with the IRS, and beneficiary distribution records. These documents are vital if the IRS audits the estate or beneficiaries need proof for tax reporting.
Closing checklist (one‑page summary)
- Order certified death certificates
- Obtain letters testamentary
- Open estate bank account
- Collect last 5 years of returns and all income statements
- File final Form 1040 on time
- Confirm whether Form 706 is required; file or extend
- File Form 1041 if estate earns income
- Prepare inventory, appraisals, and beneficiary communications
- Retain documents for 7+ years
Authoritative resources and next steps
- IRS Publication 559 (Survivors, Executors, and Administrators): https://www.irs.gov/pub/irs-pdf/p559.pdf
- IRS Estate Tax hub: https://www.irs.gov/estate-tax
- IRS forms pages: Form 1040, Form 706, Form 1041, Form 4768 (links above)
For state‑specific rules, read our guide to State‑by‑State Differences in Estate Tax and Probate Processes: https://finhelp.io/glossary/state-by-state-differences-in-estate-tax-and-probate-processes/
Professional disclaimer: This article is educational and not a substitute for personalized legal, tax, or financial advice. Consult a qualified estate attorney or CPA for guidance tailored to the facts of the estate. In my practice I’ve found that early planning and clear communication with beneficiaries materially reduces administrative time and audit risk.
If you’d like, I can convert this checklist into a printable one‑page executor worksheet or a timeline tailored to a particular state’s probate calendar.
