Estate Question

[ShoeBox Taxes]

Complex Estate.

5 Heirs. 3 of them get $10k flat, and nothing else. The other 2 each get 50% of the remainder.

Is there an easy way to do this in the software?

I thought it would be just to put the $10k in the "Smart Allocation Worksheet" for the 3, and then 50% for the other 2, but it is not calculating correctly. Like, WAYYYYY wrong. So what am I doing wrong? Do I have to do it by hand?

[jeffmcpa2010]

are you trying to allocate the estate income to the beneficiaries?

[poolcleaner]

Leave the three $10,000 beneficiaries out of the calculations.  They get $10,000 and no more and as long as there is enough money in the estate, they get no less.  

[BobKamman · Accepted solution]

"Payment of specific bequests, i.e., a specific sum of money or specific property, provided they are ascertainable under the terms of the will, will not carry out fiduciary income to beneficiaries. Thus, property distributed in cash or in kind to a beneficiary will not trigger a distribution deduction at the estate level or generate gross income at the beneficiary level."

https://nytaxattorney.com/2010/03/23/distributable-net-income-and-income-in-respect-of-a-decedent/

So DNI is split between the 2 remainderpersons.  At least that's the way I would do it, and when was the last time IRS audited a 1041?

[Skylane]

@poolcleaner  Hi Jane… it’s been ages…. Hope you’re well!!