Delaware Estate Tax Affidavit: What Executors Must File With the Register of Wills

Delaware abolished its state estate tax for decedents dying on or after January 1, 2018. This is good news for most estates — but it creates a specific confusion for executors who encounter forms, instructions, or title company requirements mentioning a Delaware estate tax. The tax is gone, but certain filings still exist. Understanding what you must file, what you do not, and why matters when you are trying to close an estate and transfer real property.

The Delaware Estate Tax: Current Status

Delaware's estate tax has a complicated history. The state repealed it effective January 1, 1999, then effectively reinstated it between 2009 and 2017 by tying it to the federal estate tax system. For decedents dying on or after January 1, 2018, the Delaware estate tax is definitively repealed.

For any estate where the decedent died after January 1, 2018, no Delaware estate tax return is required and no Delaware estate tax is owed, regardless of estate size. This is true whether the estate is $200,000 or $20 million — the state-level tax no longer applies.

The federal estate tax, administered by the IRS, is a separate matter. For 2026, the federal estate tax exemption is very high (over $13 million per individual), so the vast majority of estates are not subject to federal estate tax either. But even when an estate exceeds the federal threshold, that is an IRS matter — not a Delaware Division of Revenue matter.

The Affidavit You Still Need to File

Even though no Delaware estate tax is owed, executors dealing with real property often need to file an Affidavit to the Register of Wills That No Delaware Estate Tax Return is Required. This affidavit is a formal confirmation — filed directly with the Register of Wills — that the estate is not subject to Delaware estate tax.

Why does this exist if the tax is repealed? Because the affidavit functions as a title clearance document. Title companies, buyers, and county recorder offices want formal confirmation that the state has no outstanding estate tax claim before they will process a deed transfer from a deceased owner's estate. The affidavit provides that confirmation.

There is a filing fee for this affidavit. The exact fee varies by county — confirm the current amount with the Register of Wills before filing.

If your estate involves real property transfers, do not skip this filing. A title company will flag the absence of the affidavit as a potential defect, which can delay or kill a real estate closing.

The Delaware Fiduciary Income Tax Return (Form FID-TAX)

Separate from the estate tax is the fiduciary income tax. Once a person dies, their estate becomes a separate taxable entity for income tax purposes. Any income the estate earns during the administration period — interest on bank accounts, dividends from investments, rental income from real property, capital gains from selling estate assets — is taxable income at the estate level.

The executor must file a Delaware Fiduciary Income Tax Return (Form FID-TAX) for any income earned by the estate during the administration period. This return is filed with the Delaware Division of Revenue.

Due date: April 30 of the year following the close of the taxable period. If the estate runs from November 2025 to December 2025, the FID-TAX is due April 30, 2026. If the estate runs across calendar years, a return may be required for each year.

Who must file: Any resident or non-resident estate that generated income during the administration period. Even a modest estate that earned $50 in bank interest during the eight months of administration may technically require a FID-TAX filing.

The FID-TAX is a standard state income tax return for estates, not a federal form. It is filed separately from the decedent's final personal income tax return (Form 200-01 or equivalent) and from any federal fiduciary income tax return (Form 1041) that may be required by the IRS.

The Division of Revenue's Role in Estate Administration

Beyond the FID-TAX, the Delaware Division of Revenue intersects with probate in one other significant way: businesses. If the decedent owned a business entity — a corporation, LLC, or partnership — the estate may need to obtain tax clearances from the Division of Revenue before dissolving those entities. The Division issues Certificates of Tax Clearance confirming that no outstanding corporate or business income taxes are owed.

For most personal estates without business interests, the Division of Revenue interaction is limited to:

1. Filing the decedent's final personal income tax return (if due)
2. Filing the FID-TAX for estate income
3. Obtaining the no-estate-tax affidavit for property transfers

Practical Filing Sequence

Step 1: Obtain an EIN (Employer Identification Number) from the IRS for the estate. This is required to open an estate bank account and to file any federal fiduciary tax returns (Form 1041).

Step 2: Track all income earned by the estate from the date of death forward. This includes interest, dividends, rents, and any gain on asset sales.

Step 3: File the decedent's final personal income tax returns (federal Form 1040, Delaware Form 200-01) for income earned through the date of death.

Step 4: File the Delaware FID-TAX for income earned by the estate after the date of death, due by April 30 following the estate's tax year.

Step 5: File the no-estate-tax affidavit with the Register of Wills if real property is involved.

Step 6: Obtain any required Division of Revenue tax clearances for business entity dissolutions.

A Common Mistake: Assuming the Tax Repeal Means No Tax Filings

Many executors hear "Delaware repealed its estate tax" and assume no tax filings are required. That is incorrect. The estate tax repeal affects one specific tax. It does not affect:

• Fiduciary income taxes on estate earnings (FID-TAX still required)
• The no-estate-tax affidavit for real property title clearance (still required)
• Federal estate tax obligations (governed by IRS rules, not Delaware)
• The decedent's final personal income tax return (still required)

Skipping the FID-TAX because the estate tax was repealed is a common error that can result in penalties from the Division of Revenue and complications at the estate closing.

For a complete walkthrough of all Delaware tax filings required during estate administration — including how to calculate estate income, when to hire a CPA, and how the FID-TAX interacts with the Register of Wills' final accounting review — the Delaware Probate Process Guide covers all three counties and both state and federal filing requirements.

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