The Posthumous Tax Affairs of Philip Seymour Hoffman

I know virtually nothing about the financial affairs of Philip Seymour Hoffman, so this posting will, of necessity, constitute much speculation.

But he likely possessed sufficient assets for his estate to be liable for the Estate Tax.  The Estate Tax Return is due 9 months after the date of death, with a 6-month extension available if timely requested.  It will therefore be a while before this matter actively surfaces.

Because PSH was not legally married to Mimi O'Donnell, his significant other, there will be no marital deduction applicable to his Estate.

I also note that more than 20 years ago, an IRS Technical Advice Memorandum, together with an obviously related Field Service Advisory, gave some very cogent reasoning for valuing illegal drugs in the possession of a decedent at their street retail value for Estate Tax valuation purposes.

One would hope that the IRS Estate & Gift Tax people would be too busily engaged in their own niche to be distracted or befouled by some of the IRS's other high profile problems, and would insist upon getting the government's due from the late Mr. Hoffman's estate, with due regard to the bags of heroin found in Hoffman's apartment.

 

Rest in peace, Philip Seymour Hoffman.