Today TaxMama hears from Kris in Kentucky, with a good question. “We prepared and filed a tax return for a lady who died last August. She received a Stimulus Rebate. Does the Estate cash it?”
Here’s what I do when I know there is money coming in on for someone who’s died – from any source. I like to encourage my clients to leave a bank account open with the deceased person’s name on it. Naturally, joint accounts are best, with the trustee or executor also being named on the account.
Of course, if there wasn’t already a join account in place, be sure to open an account for the deceased estate.
That way, you can just deposit all funds into that account without having to jump through hoops to prove the beneficiary is entitled to the check. Or worse – to wait for IRS or a state agency or other company – to reissue the checks.
So, to answer your question, yes, if the estate has a bank account, that’s where it goes.
And remember, you can find answers to all kinds of questions about Stimulus Rebates and other tax issues, free. Where? Where else? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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