Estate

[dr58lj15]

I filed an Estate return for my client who is the executor of an estate in 2024.  For 2025, we have added interest that was received for cashed savings bond in 2025. In addition, the executor sold the land of the estate which he had inherited.

My question is do I continue to file as an estate and note that this is the Final Return because it will be?  

The name of the closing papers for the sale of the land is in the name of the estate, but the 1099S is made out to the executor solely because he inherited the land.   Should I prepare a K1 to move this sale to his personal return

So, basically do I keep this return as a complete estate return with no K1s' going to the executor? We did not have K1s' in 2024, because the 1099Rs' were all made out to the estate and the attorney distributed the proceeds at probate.

Thanks,

Lynnetta Nadeau

[Just-Lisa-Now-]

the executors SSN is on the 1099S? or the estate EIN?

[sjrcpa]

Is the Executor also a beneficiary?

[sjrcpa]

"We did not have K1s' in 2024, because the 1099Rs' were all made out to the estate and the attorney distributed the proceeds at probate."

If the 1099-Rs were made out to the estate they should have been reported on the estate's 1041. Then claim a distribution deduction for the amounts distributed.

An estate is not final until all assets (probate and nonprobate) are distributed.

[BobKamman]

And no one told the executor that the savings bond interest could go on the decedent's final return?

[dr58lj15]

The executor's social security number is on the 1099s

[dr58lj15]

Yes, the executor is a beneficiary.

[BobKamman]

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@sjrcpa wrote:

"We did not have K1s' in 2024, because the 1099Rs' were all made out to the estate and the attorney distributed the proceeds at probate."

If the 1099-Rs were made out to the estate they should have been reported on the estate's 1041. Then claim a distribution deduction for the amounts distributed.

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Yes, that's certainly a troubling statement.  So, who paid tax on the distributions?  And by not reporting the income on a 1041 and then taking a deduction for court costs, attorney fees and other allowable expenses, the beneficiary likely paid too much.