- Joined
- Oct 16, 2019
- Messages
- 2
- Reaction score
- 0
- Country
I’m trying to confirm who takes what income on 2019 taxes (individuals or estate), what parts are Income in Respect of a Decedent, etc…
Timeline:
Facts:
Income streams in question:
Thanks for your help.
Timeline:
- Grandma passed 1/9/19
- Mom passed 1/19/19
Facts:
- I’m executor of estate.
- Mom’s will split her estate evenly to 3 kids. Relatively small estate, so no state or federal inheritance tax due.
- Mom/Kid #3 had joint checking, which became Kid #3’s at Mom’s passing.
Income streams in question:
- #1 – Mom’s pension payment (earned December) was paid on 1/31/19 to Kid #3’s checking account (formerly Mom/Kid #3 joint). But would have been 1/3 to each kid if part of estate. My guess: IRD, Kid #3 takes as regular 2019 income (and we settle up 1/3s later).
- #2 – Dividend paid 2/1, Mom alive on 1/10 record date, paid to checking account solely in Mom’s name. My guess: IRD, Mom’s estate takes as estate income on 1041.
- #3 – Dividend paid 2/1, Mom alive on 1/10 record date, paid to Kid #3’s checking account (formerly Mom/Kid #3 joint). But would have been 1/3 to each kid if part of estate. My guess: IRD, Kid #3 takes as regular 2019 income (and we settle up 1/3s later).
- #4 – Annuity from Grandma (partially taxable, Mom sole beneficiary), paid to Mom’s estate checking account in March 2019. My guess: Estate takes taxable portion as estate income on 1041.
- #5 – RMD from 403(b) paid to Kid #3’s checking account (formerly Mom/Kid #3 joint). I understand that the decedent’s calculated RMD must be taken by one or more of the beneficiaries. My guess: Kid #3 can take as ordinary 2019 income.
Thanks for your help.