Hello Megan. I received your initial response.As follow-up, I will try to clarify the question. Rather than the $255, I am concerned about the social security benefit covering the last full month of life (Dec 2014), paid out in the month of death (Jan 2015), but in this case, not before the recipient had died. At the time, as personal rep, I did speak to two SS help desk people and got conflicting answers. One said return
the deposited benefit and use SSA form
1724 to apply for the benefits, which were, indeed, earned (retrospective payment of benefits), and the other said keep the deposit in the account as it was earned. I have done the latter, and now seek the best way to proceed; either a) find a way to return the last month's benefit, file the 1724 requesting the payout be made to the two adult sons, and assuming no income tax consequences to the estate, or b) keep the deposit. Unfortunately, I do not have an SS 1099 for 2015 (due to forwarding and changing addresses), but one of the sons could visit the local
SS office to clarify. if the benefit remains with the estate, I would prefer to distribute the final benefit o the two adult sons as IDD (which may affect the AMT calculation for the estate 1041). Are both approaches possible, or do I need to return the benefit amount to SS and apply with the 1724 for reissue. Am I correct that any tax liability
would shift to the sons, with no tax liability arising for the estate? thank you.