Message Font: Serif | Sans-Serif
No. of Recommendations: 0
My father-in law passed away in 1999, leaving a very small estate for which no probate is required under state law. The beneficiaries are my husband and his brother. We filed (what we thought was) a final tax return for my FIL in 1999.

Last night, we received a check made payable to my FIL in connection with the de-mutualization of his life insurance company. In addition, the letter stated that an additional 31% had been withheld as Y2000 taxes. As this total $2000 in income is about all the income that came to him in 2000, we expect to get a 100% refund of the amount withheld if it is reported on his tax return (altho maybe we are wrong on this).

Do we file another final return for my FIL for 2000 on which we report all his 2000 income or should the income be reported equally on the returns of the 2 beneficiaries? If the latter, how do we get a refund for the withholding so that it can be distributed to the beneficiaries?

If it matters, we have distributed some, but not all of the assests of the estate at this time, but expect to have it all distributed in 2000.

Thanks for your help. -- Suzanne
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.