All of my deceased FIL accounts were POD so there no more income was generated by his estate. His house sold in 5 months and paid to the estate. What do I need to file?

Forum|Forum|1 year ago
December 27, 2024
1 reply
0 views

I know to do final 1040, but do I need to do 1041? The funds were distributed to children so inheritance tax is required. The value of the house did not appreciate in 5 months.

pk12_2

Employee

@samdscott9 , perhaps you should consult an attorney.

However, being a follower of KISS ( keep It Simple Stupid ) principle :

(a) I would make sure that the estate is not large enough to require a probate in the state and/or Estate / Gift filing. This may trigger a need to file a federal one.

(b) I would make sure that there are no intra-inheritor possible issues that may need adjudication through probate or otherwise.

(c) If there is any gain or loss considerations that result in pass through then you would have to issue K-1s to the inheritors of record. OR have the estate pay the taxes , requiring EIN and filing for both federal and State purposes.

That is my view and what I followed on passing of my wife recently.

Hope this helps