She is also responsible for paying his final taxes and any other debts that may arise. If she distributes the full amount of estate assets, then the estate will be closed.
Does she owe any probate taxes? Has she spoken to the Probate Department to find out?
It is often a good idea to leave some assets in the estate in case some additional debts arise or if the tax return owes a tax liability. Once it is past the time that she things any debts may arise, she can close the estate and make the final distributions to herself.
Exemption Deduction
An estate is allowed an exemption deduction of $600 in figuring its taxable income. No exemption for dependents is allowed to an estate. Even though the first return of an estate may be for a period of less than 12 months, the exemption is $600. If, however, the estate was given permission to change its accounting period, the exemption is $50 for each month of the short year.
An exemption is not taxable and does reduce taxable income for the estate
