Ask TaxMama ... Estate Split ... Vol 3, Issue 103, March 9, 2001

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Tax Information With A Mother's Touch

Published by Eva Rosenberg, MBA, EA
Volume 3 Issue 103 March 9, 2001

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Estate Split

From: Beaumont, Texas

Hi TaxMama,

We received a 1099 for year 2000 on my wife's fathers estate.

The amount was accumulated interest and was divided between four sisters. Does this need to be filed on our taxes, or can we file a final estate income tax return for the year 2000?

If we can file a final return, what kind of forms will be needed.

Marvin

Hi Marvin,

My condolences on your loss. Losing a father is never easy. Doing the subsequent paperwork makes it all so much worse - and harder to get over the loss.

When you say 'we received' - whose name and social security number was on that 1099?

How much was it for?

When did your father-in-law die?

Typically, you should be filing a personal tax return for her father, covering the part of the year during which he lived. In other words, if Dad died on April 1st, the tax return would cover all the income from January through March 31, 2000.

The income earned during the rest of the year could be reported one of two ways:

1) on an Estate & Trust Return, Form 1041, with the box for Decedent's Estate checked off, and K-1's issued to the heirs

or

2) it could all be split among all the heirs .

You may want to talk to a tax pro to get this sorted out the best way for your own situation.

Best wishes,

Eva Rosenberg

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