William Lako: Death, taxes, and paperwork: Filing a final tax return

Benjamin Franklin once wrote, “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” Unfortunately, these two certainties collide when a loved one passes away. Whether it’s your spouse, parent, or an estate where you’ve been appointed executor or personal representative, a final tax return is required for the year of death.

The same form is used for the final return, but “Deceased:” is written at the top, followed by the person’s name and date of death. For example, if you were married, you would still file as married, filing jointly for the year your spouse died. However, if assets were in the decedent’s name only or if all assets transferred to the surviving spouse, you may also need to file an estate return. While the estate exemption is significant—$12.92 million in 2023 and $13.61 million in 2024 for individuals—the estate must make a portability election so the lifetime exemption can pass to the surviving spouse’s estate.