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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Bit complicated, hope someone can help. My grandmother died

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Bit complicated, hope someone can help. My grandmother died last year and I was the recipient of several thousand dollars as part of her estate. Her estate was handled by my uncle on his own, no CPA's/lawyers involved. When getting my taxes done this year, I my accountant told me that she needed a K-1 Form in order to properly file. (Ended up getting an extension.)

My uncle apparently never filed a K-1 for me (or anyone). He is willing to complete one, but not sure about it's validity. Is this a problem and do I HAVE to have a K-1 form?

Can you tell me the approximately value of your grandmother's estate when she died?

Was it worth more than $2 million?

Customer: replied 7 years ago.
Thanks for getting back to me!

I have no idea about the exact amount, but I can say with 100% certainty that it was less than $2 million dollars. (I received approximately $17k.)
Hello againCustomer

For decedents who died in the tax year 2008, any estate that was valued at $2 million or less did not have to pay estate taxes, and no estate tax return would be due.

When an estate does exceed the allowed amount which is exempt from estate tax, then the executor of the estate files an Estate Tax Return to pay the estate taxes. At the same time he also issues K-1 forms to each of the estate beneficiaries to report how much income they received from the estate.

If your grandmother's estate did not exceed the exemption amount of $2 million, then no estate tax return needed to be filed, and therefore no K-1 forms are required.

The inheritance which you received is not taxable on your federal tax return and does not even need to be reported. Depending on the state you live in or the state your grandmother lived in, there may be a state reporting requirement, but it would not require a K-1 form to be issued. You would simply report the amount of the inheritance you received, again only if you live in a state which imposes an inheritance tax.

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Thank youCustomer

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Customer: replied 7 years ago.

Thanks, XXXXX XXXXX excellent. I will definitely provide feedback. (Wish I'd discovered this service earlier.)