When someone dies and you are somehow responsible, tax issues you will deal with can be complicated but, hopefully, this when get you started in the right direction.

A. Income Tax - This one should be obvious. If the person who died had been filing tax returns, it's an indication that they may have had enough income in the year they died that federal and State tax returns need to be filed for the year of death. This is the one tax you might want to handle on your own, but maybe not. If you don't feel comfortable doing your own tax returns, this work is better turned over to a CPA or other tax preparer.

B. Inheritance Tax - Chances are good in Maryland that there will be no inheritance tax. If property is distributed to a spouse, a child, a grandchild or others down the line, a spouse of a child or others down that line, a parent, a grandparent, siblings, or a stepchild or stepparent, there is no inheritance tax. The Maryland flat rate inheritance tax starts with nieces and nephews and other more remote heirs. 

C. Estate Tax - Simply put, for 2024 and 2025 deaths, you need not be concerned about estate tax unless the assets of the person who died exceeded $5 million for Maryland and $13.61 million for federal. If the assets are over the $5 million mark, better engage a lawyer and CPA.

D. Fiduciary Income Tax - This is a fancy word but it is just another form of income tax. If the person who died had a revocable trust and/or there is to be probate, tax law treats the trust (which by the death has become irrevocable) and the probate as separate tax entities that have to file tax returns. Probate is handled by a Personal Representative (Maryland's terminology for Executor) and the trust is handled by a successor trustee. The Personal Representative and the trustee are fiduciaries. They are the ones who will be filing those income tax returns. Sometimes, we have both a probate and a trust. Thus there is the potential that this category results in 4 separate tax returns each year.