[EstateQuestions]

In Maryland I know of the list of order that payments need to be made of the Estate (probate) account. The following represent the top 6:
1. Fees due to the register;
2. Costs and expenses of administration;
3. Funeral expenses not to exceed $5,000 (small estate) or $10,000 (regular estate);
4. Compensation of personal representative in a regular estate, legal services and commissions of licensed real estate broker;
5. Family allowance – Spouse $5,000.00 each minor child $2,500.00;
6. Taxes due by the decedent;

If the decedent owed income taxes for the prior two years before death... does payment to the state and Fed for these fall into number 6? Or do they take preference over all since it was pre-death and should have been done and a lien has been threatened? Thank you!

[AtlantaTaxExpert]

The fact that taxes due by the decedent is SIXTH on the list of priority is shocking. Assuming that is a STATE (Maryland) list of priority, the #6 priority for taxes would apply ONLY to state income taxes.

For FEDERAL income taxes, the priority is probably #4, after the registration costs, estate admin costs and funeral expenses.

[EstateQuestions]

That shocked me too! Thank you...

[AtlantaTaxExpert]

Glad to help!