Estate Tax Return

[jmbillmeyer]

I have a client that is filing her tax return jointly with her deceased husband. The deceased husband's mother also passed away within just weeks of my client's husband. The mother had IRA's that have issued 1099"s to the Estate of the deceased husband. At first, I thought I could include the 1099-R income on the final joint return for my client but when I realized the 1099's are issued to his Estate and have an EIN # instead of his ssn I was not sure that would be correct. I have researched and it looks like I need to file a 1041 for the Estate however I am not sure where to put the 1099-R income as I can't find the worksheet for it. I am also not sure if I should report just the 1099-R income or other money from the mother's checking/savings accounts that was divided between the siblings? The amounts are very small, I am just unsure of the correct way to report this, any help would be appreciated.

[Skylane]

I’m assuming there are not a lot of income producing assets in Moms estate… the money from her checking and savings would not be taxable to her heirs…. The inherited IRAs would be taxable to the beneficiaries…. In your case, the estate of the husband.

Was there a will? Was your client the sole heir to her husbands estate? Did she receive the money? If so, I’d include the 1099R  on your clients return (so the tax is paid). 

the 1041 would be a pass through to the husbands heirs….  If there’s nothing else  in the estate and it was a full distribution I probably wouldn’t bother with a 1041…. If there’s going to be annual distributions from the inherited IRA they should make sure the IRA trustee retitles the account 

[jmbillmeyer]

That is correct, no income producing assets, only what the deceased husband received as inheritance. My client is the sole beneficiary of her deceased husband's estate. The only reason they opened the estate was because the 1099-R distribution was made payable to the Estate. I was debating on just including it on the joint tax return, but will that be ok with it having an EIN and not his ssn?

[BobKamman]

The mother died first?  The son didn't collect the account before he died?  So the mother's estate is not involved, it's just  the son's.  Is the wife his only heir?  Who cashed the check?  Did his wife keep all the money?