When a loved one passes away, their estate may need to go through probate—the legal process of settling assets and debts. If the estate includes a home or property in the Catalina Foothills, Arizona, one of the most important things to understand is probate taxes. While the process can feel overwhelming, knowing the basics can make it easier.
What Are Probate Taxes?
Probate taxes usually refer to the taxes that need to be handled while an estate is in probate. These can include:
- Property taxes – Must be kept current during probate.
- Capital gains taxes – May apply if the property is later sold for more than its adjusted value.
- Federal estate taxes – Only affect very large estates (most Catalina Foothills families won’t need to worry about this).
- Arizona state taxes – Arizona does not have inheritance or estate taxes.
How Probate Taxes Affect Catalina Foothills Real Estate
If an estate in the Catalina Foothills includes real estate, here are a few key points to know:
- Property taxes must be paid. Falling behind can cause penalties or liens.
- Step-up in basis helps reduce taxes. When the property is inherited, its tax value is reset to current market value, lowering possible capital gains taxes when selling.
- Probate court approval may be required. If selling the home during probate, the court must approve, and taxes need to be resolved before closing.
Tips for Handling Probate Taxes in Catalina Foothills
- Stay on top of property tax payments.
- Talk with a tax professional if federal tax issues may apply.
- Work with a local Catalina Foothills realtor who has experience with probate sales.
Get Probate Help in Catalina Foothills
Probate doesn’t have to be confusing. With the right support, you can handle probate taxes and property sales in the Catalina Foothills with confidence.
Contact Ryan Comstock – Catalina Foothills Realtor
📞 Phone: 520-261-4669
📧 Email: ryancomstock@ryancomstock.com
🌐 Website: www.ryancomstock.com