Estate Return Filed

Forum|Forum|1 year ago
March 30, 2025
1 reply
16 views

New client brought me their paperwork and it seems they have been self preparing and filing an estate return for about 10 years. There were no assets and no probate from the very beginning. They have left in the estate ID an annuity payment of around $10000 per year. How to correct this? Do I go ahead and file their 1040? He already filed the estate return for 2024. This has been a most unusual year!

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BobKamman

Level 15

So, you mean an estate income tax return, Form 1041. (A coward dies 1,000 deaths, but wealthy Americans file only one 706.) You can't say there were no assets, if there was an annuity that pays $10,000 a year. Unless maybe someone didn't notify the insurance company of the death. Was this maybe owned by a trust with an EIN, before death?

Follow the money. Where does the payment go? Does it stay in an account that is not in the estate beneficiary's name? Has anyone been paying tax on the distribution? Have you seen the 1099-R? Does it state how much is taxable?

T

taxesbydotAuthor

Level 4

Yes, I did mean 1041. And they did not inform the insurance company. I have not seen the 1099R. The spouse and her sister split the $10000. Client says roughly $500 per year is paid in taxes.

That is all I know at this point. I do not do 1041 returns and not sure how to advise client.

sjrcpa

Level 15

They need to advise the annuity payor of the death.

Come back when you find out whose name and SSN/EIN are on the 1099-R.

The more I know the more I don’t know.

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