Sole Shareholder passes away on day A. The estate is opened on date B, and the stock certificate is transferred to the heir on date B as well. Both dates are in the same year.
Which of the two options below better describes the recipients of K-1 forms?
Option 1:
jan 1 to date of death -> prorated k-1 to the original shareholder
date of death (i.e. day A) to day B -> prorated k-1 to the estate
day B to dec 31 -> prorated k-1 to heir
Option 2:
jan 1 to date of death -> prorated k-1 to the original shareholder
date of death (i.e. day A) to dec 31 -> prorated k-1 to heir
the estate would not get the k-1 at all.
Thanks in advance.
Which of the two options below better describes the recipients of K-1 forms?
Option 1:
jan 1 to date of death -> prorated k-1 to the original shareholder
date of death (i.e. day A) to day B -> prorated k-1 to the estate
day B to dec 31 -> prorated k-1 to heir
Option 2:
jan 1 to date of death -> prorated k-1 to the original shareholder
date of death (i.e. day A) to dec 31 -> prorated k-1 to heir
the estate would not get the k-1 at all.
Thanks in advance.