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Author: SuzanneSLO One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121222  
Subject: Taxes withheld for Decedant Date: 3/24/2000 12:47 PM
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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
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