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Author: Fletch52 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121426  
Subject: Deceased taxpayer, when to file form 1041 Date: 3/20/2010 10:10 PM
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Tax fools: My wife's father passed away in September 2009. Her mother passed away this month.

She is the executor for the estate. I am filing the tax returns. I just completed the 2009 joint federal return. I indicated the date of death for both. As her mother had income for 2010 there will have to be a return filed for 2010 next year.

At what point do I file the 1041 and what is the time period of the income. Upon her mother's death all assets except one small IRA passed immediately to their daughter via a trust. Does the income from those assets become my wife's income or that of the estate?

I never had to complete this type of return previously so I would appreciate some direction from those who have been through it before.

Thanks....Fletch52
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 109678 of 121426
Subject: Re: Deceased taxpayer, when to file form 1041 Date: 3/21/2010 1:42 AM
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My wife's father passed away in September 2009. Her mother passed away this month.

My condolences. I had a similar experience with my parents. It's a lot to deal with in such a short time.

She is the executor for the estate. I am filing the tax returns. I just completed the 2009 joint federal return. I indicated the date of death for both.

I haven't looked at the instructions lately, but the last time I did, only his DOD should be indicated on the 2009 return. It's kind of weird since you wind up signing as personal rep for someone who was alive at the end of the tax year, but that's the way it's supposed to be. Her DOD goes on her 2010 Single return if one is required.

As her mother had income for 2010 there will have to be a return filed for 2010 next year.

If there was enough income before her DOD to create a filing requirement. In your spare time, make sure that all payors have the new ID information. If a form is required, you can use the W-9.

At what point do I file the 1041 and what is the time period of the income. Upon her mother's death all assets except one small IRA passed immediately to their daughter via a trust. Does the income from those assets become my wife's income or that of the estate?

If this was the standard grantor trust where everything is distributed upon death, there's no 1041 to file since the estate never had any income. That was the case with my parents' trust. Check with the lawyer to make sure, but I don't think you need one, nor do you need an EIN for the trust.

Phil
Rule Your Retirement Home Fool

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