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Subject:  Re: Estate Distributions Taxable as Gifts? Date:  4/6/2013  11:33 AM
Author:  vkg Number:  118307 of 129789

I am sorry for your loss. I understand, my father passed away a few months earlier.

There is no gift tax.

If there are estate taxes due, then the estate would likely pay it. From your previous post, there was an inherited IRA. There could be a situation where there aren't sufficient assets outside of an IRA to cover estate taxes. It doesn't sound like that is this situation.

Now for difficult issues. Was a personal income tax return filed for 2011? Since your father passed away so late in 2011, almost all of the income would be allocated to his income and not the estate. An estate return might not be required for 2011.

She should have obtained a TIN for the estate, and transferred the undistributed accounts to the estate. If there was over $600 in income during 2012, an estate income tax return needs to be filed, and K-1s issued. If she hasn't transferred the remaining assets to the estate. A personal income tax return would need to be filed to transfer the income to the estate.

If your father had a trust, then probate might not be required. Given the assets you have listed, there was enough assets to require probate if there wasn't a trust.

She isn't seeking professional help, so there can't be those bills. If there is real estate, then there could still be expenses to cover. Other than expenses for real estate, I don't see any reason that there would still be unpaid bills. I was surprised at how quickly final medical bills were submitted to insurance and processed.
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