passed away Dec 2010 and I am completing 1041 for decedent's estate for period Dec 2010 to Nov 2011. Income
for period is $20 in interest
and $2000.00 distribution
from a governmental pension
. That is all. Misc deductions
are $500.00 & attorney fees for probate, etc are $3,500.00 (so total deductions exceed income). Should deductions be allocated to accounting
income or corpus. There are 3 beneficiaries
(equal shares) - 2 individuals, one non-profit
. I would like to make this the initial and final return
. Is this possible? Do I have to allocate the excess deductions to the beneficiaries and do they get a tax benefit
out of this?
The above was the only income but the following amounts were also deposited in the estate bank account because they belonged to decedent:
1) $48,000.00 which was in a bank account under the decedent's name & transferred to estate bank account
2) $12,000.00 for a life insurance death benefit
I assume the above two items have no tax implications. The funds will be given to beneficiaries in Nov 2012. No distributions have been made as of yet. Does the $48K and $12K have to be reported somewhere on return even though it is not income? Does the non-profit get mentioned even though only what I assume is corpus will be distributed to it?