Detailed analysis of the executor’s tax obligations and the current rules for regularizing deceased assets with the Federal Revenue Service
Patrimonial succession involves specific tax obligations that continue even after the taxpayer’s death. The estate — set of assets, rights and obligations left by the deceased person — is considered a distinct entity before the Federal Revenue Service until the division is completed. The fiscal regularity of this entity is crucial to avoid fines, CPF blocking and legal impediments in transferring assets to heirs. Understanding the schedule and declaration methods is the first step for the inventor.
The concept of estate in tax legislation
From a legal and tax point of view, the estate cannot be confused with the figure of the heirs or the sharecropper spouse, although they have a direct interest in the patrimonial mass. For the Federal Revenue, the estate maintains the tax liability of the “de cujus” (the deceased person) until the inventory process (judicial or extrajudicial) is completed and the sharing is approved.
During this period, the deceased’s CPF remains active as an “estate”. The responsibility for presenting the information to the Tax Authorities falls on the inventor, who must report annually if the assets or income fall within the general mandatory rules of Personal Income Tax (IRPF).
Declaration stages: initial, intermediate and final
To understand how to file a deceased person’s income tax return in 2026, it is necessary to identify what stage the inventory process is at. The Federal Revenue categorizes the obligation into three distinct types:
Initial estate declaration
Refers to the calendar year of death. If the taxpayer died in 2025, the declaration to be submitted in 2026 will be the Initial. It follows the same rules as a common annual adjustment statement. Income and expenses must be declared as if the taxpayer were alive, covering the entire tax year.
Intermediate estate declaration
It must be presented in the years following the death, while the inventory process is ongoing and the sharing has not been completed. For example, if the inventory extends from 2026 to 2028, in each of these years the inventor must send the intermediate declaration (always respecting the mandatory rules in force).
Final declaration of estate
This is the most critical step. It must be delivered when the inventory process is closed and the sharing is made (legally final or by public deed). In this statement:
- The deceased’s CPF is canceled due to death;
- The values transmitted to each heir are detailed;
- Any capital gains on the transfer of assets are determined (if the transfer value is higher than the cost value declared by the deceased).
Technical procedures for the 2026 financial year
Executing the declaration in 2026 requires attention to deadlines and correct completion in the Declaration Generator Program (PGD). The inventor must observe the following technical points:
Taxpayer identification: On the identification form, inform the code of the nature of the occupation (if applicable in the initial form) or use the code “81 – Estate” when dealing with the Final Declaration.
Appointment of the inventor: It is mandatory to inform the name and CPF of the inventor in the “Estate” form, ensuring that the Federal Revenue Service knows who is legally responsible for the information.
Refund processing: If the estate has taxes to be refunded, the amounts can be deposited into a bank account held by the deceased or, subject to a court order, into the account of the executor or heirs.
Taxation on capital gains: If the assets are transferred to the heirs at a market value higher than that stated in the deceased’s last declaration, the difference is taxed as a capital gain. The tax must be paid by the estate before the Final Declaration is submitted.
Current scenario and data crossing
The Brazilian tax environment has made significant progress in digitalization and data crossing. For the 2026 fiscal year, the Federal Revenue Service will intensify the use of artificial intelligence to cross-reference information from notary offices (inventory deeds) with the IRPF databases.
Common errors, such as the omission of rental income received by the estate or the inconsistency between the value of the assets in the Final Declaration and the value declared when entering the assets in the heirs’ declaration, are the main triggers for fine mesh. Precision when transferring bank balances and financial investments is essential, and must correspond exactly to the sharing formality.
Estate FAQ
Who is required to declare the estate in 2026?
The obligation follows the same rules as living taxpayers (taxable income limit, possession of assets above a certain value, capital gains, etc.). If the estate falls within these rules, the executor must declare it. If there are no assets to be inventoried and the deceased does not comply with the rules, the declaration is waived, simply canceling the CPF.
What happens if the declaration is not submitted?
The deceased’s CPF will have the status “Pending Regularization”. This prevents the issuance of a Debt Clearance Certificate (CND), an essential document for completing the inventory and releasing funds in banks.
Should heirs include the assets in their declarations before the end of the inventory?
No. As long as there is no sharing (Final Declaration), the assets continue to belong to the estate. The heirs will only include the assets in their own declarations in the year following the end of the inventory, reporting the transfer in the “Exempt and Non-Taxable Income” form (Patrimonial Transfers line).
The tax regularization of the estate is a mandatory step for the legal security of the succession. The inventor assumes civil and tax liability for any omissions or errors in filling out the initial, intermediate and final declarations. It is recommended that the process of how to file a deceased person’s income tax return in 2026 be accompanied by robust documentation, in line with the formal sharing or public deed, to avoid future liabilities for the heirs.
Disclaimer: The information contained in this article is for informative and analytical purposes only and does not replace specialized accounting or legal advice. Tax legislation is subject to change and specific cases require detailed professional analysis.
