How should an executor handle the final medical expenses of a person’s estate? This article discusses the tax treatment of unpaid final medical expenses. Non-reimbursed medical expenses are normally deductible for income tax purposes in the year that those expenses were actually paid. If the individual dies before the expenses are paid then “the executor of the decedent’s estate can elect to treat medical expenses paid by the estate during the one-year period that begins on the day after the date of death as if those expenses were paid when incurred.” It is also important to understand the final Form 1040 basics, be aware of the necessary filing dates and the procedures for filing a joint return. A person should also decide on whether to waive the right to count unpaid medical expenses as liabilities on federal estate tax returns.
See Bill Bischoff, How to handle a loved one’s final medical expenses, Market Watch, August 11, 2015.
