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Just a regular savings account.
Thank you! I have a related question. I've also had to use the small estate affidavit form to claim my mother's tax-deferred IRA, which is only about $17K. I want to distribute the full amount to my brothers since he is in the lowest tax bracket. What form do I use to "designate" that I distributed the full amount to him? Thanks.
That is where I ran into a problem with BofA. They claim that there was no named beneficiary, which I just don't believe. I think they just lost the paperwork. So, that is why I needed to use the small estate affidavit to claim the money. I want to deposit into the Trust distribution account, then distribute it to my brother for tax purposes.
The beneficiaries of the estate are my two brothers and myself. So, for the IRA amount I need to use 1041 correct? For tax purposes, I want to distribute the $17K to my brother who is in the lowest tax bracket. How do I officially designate for tax purposes. Thanks.
The way that it is playing out is that BofA is going to issue a check for the $17K made out to the Trust distribution account. So, effectively, the estate is taking a lump sum. I want to deduct that amount from the estate by distributing it to my middle brother who is in the lowest tax bracket so that taxes owed on it would be paid according to his level. Would I be able to document all this on the 1041 form?