Finish Line Probate in Texas
After you’ve resolved the estate’s debts, paid any applicable taxes, funded your compensation, and distributed the estate’s remaining assets, you’ve fulfilled your responsibilities as executor. However, there are still several things you need to consider.
Tax Returns and Reserves
Since tax agencies can, and sometimes will, review your submission and decide you owe additional amounts, it’s a good idea to keep some cash in reserve, just in case. You can still make the bulk of the estate distributions if you’re confident that the estate settlement has been done correctly.
If you were the executor for a substantial estate and needed to file a federal Form 706 and/or its associated state forms, you’ll also need to obtain tax clearance letters from the agencies you filed with, stating there are no outstanding tax issues. This can take six to nine months from when you submit the return.
Trusts terminate according to a defined termination date, such as the death of a beneficiary or the date the beneficiary attains a stated age. If you are both the estate executor and the trustee for an associated trust, you don’t have to wait for the trust to terminate before closing the estate.
Probate Final Accounting
If the estate has gone through an official probate process, you must submit, and get approved, a “Final Accounting,” which provides details on how you handled estate assets, what income the estate generated, if there were any losses, how much you paid each creditor, and how much you distributed to heirs.
Probate Closing Statement
After the estate has completed the probate process, if it was necessary, the final step is to submit a “Closing Statement” for approval. This document states that you’ve resolved all debts, paid all taxes due, and distributed the net proceeds of the estate appropriately.
Close Down the Estate Account
At this point, there should be little, if anything, left in the estate other than perhaps the estate bank account you opened. If you haven’t already closed this account when you distributed the proceeds, now is the time to do so.
File Final Form 56
If you filed a Form 56 with the IRS when you became an executor (or at any other time), you should now file another Form 56, officially notifying the IRS of the termination of your responsibilities.
Questions Concerning Probate and Real Estate?
Certain aspects of settling an estate, like handling an estate’s real estate holdings, may be outside your area of expertise or comfort zone. If in doubt, work with a professional.
If you have questions concerning probate and real estate in Tarrant, Parker, Wise, Collin, Denton, or Dallas County, contact David Pannell and Cities Real Estate. David has extensive experience helping families with their real estate needs before, during, and after the probate process.
David has been an agent/realtor since 2005. He has served as a United States Marines, City of Arlington police officer, and is a dedicated family man. You can trust him to put your interests first in any and all situations.
Call David today at (817) 797-9047 for help with your real estate and probate needs. You will be treated respectfully, and your requirements will be met efficiently and confidentially.
NTREIS data last updated December 1, 2023.