Estates

• A person who dies leaves behind a collection of possessions, property and accounts known as his estate. An estate may continue to generate income after a person is deceased. For example, bank accounts continue to generate interest and stock investments may continue to grow in value.
  
  

Personal Represtative

• The Internal Revenue Service uses the term "personal representative" as a reference to an executor or administrator who is in charge of managing the estate and disposing of its assets. The executor is sometimes identified in the will of the deceased person. If not, a person is assigned by probate court to administer an estate.
  
  

Income Taxes

• The personal representative is responsible for filing the final income tax returns for the deceased. Taxes are due for the year in which the person died. Taxes may also be due for the year prior to death if the death occurs before the person has filed for that year. For example, a person who dies in March may not have filed his tax forms for the previous year, which are generally due in mid-April.
  
  

Form 1041

• A personal representative for an estate is also responsible for filing IRS Form 1041, Income Tax Return of an Estate. This form is used to report income received by the estate prior to the disposition of assets to heirs and creditors. It can sometimes take several years to reach a final settlement of an estate and Form 1041 must be filed each year the estate is in existence.