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The death was just a couple of days ago. The total estate is under $125k, all of it in cash and bonds, and will generate no more than $5,000 in income for the rest of the year, even less if it is disbursed to the heirs before the year is up. Must a tax return be filed by the estate under these circumstances?

And do we even need an attorney since we are the only heirs and the terms are spelled out nicely in the will and we will agree on who gets what?

My condolences, fleg.

Whether the estate will have to file an income tax return depends on how much income the estate generates before the assets are distributed. The threshold is pretty low, I think $600 of income, so the sooner things get resolved the better.

You mention a will, but not a trust, so I think a probate process is probably going to be needed or you won't be able to transfer the assets. Yes, I'd drop a few bucks on a lawyer, especially since you're talking about an heir disclaiming.

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