Estate passes out Car and Real Estate and Cash

[thetaxman2200]

I am completing a second 1041 this year - my question is this. The estate after DOD Pass out the cash in the bank accounts, The Cadillac and The Condo to two of bene. I am assuming this would go on their 706 returns. Does the 1041 have to account for this?

Thanks Brian

[Burke]

It sounds like the estate distributed cash, personal property and real estate (without selling anything?) Why would that be on a 706? For anybody? How much were the total of the estate assets? The 1041 shows the distribution of the cash assets on Page 2 under DNI in order to determine if the bene's have any taxable income to report via their K-1. Real estate would pass directly to the heirs at law if it were not sold within the estate.

[taxea]

What do the estate docs say? Is there any evidence of "transfer on death" for these items?

[thetaxman2200]

I have just a spreadsheet showing the assets where distributed to the beneficiaries

[bgiez]

Would the distributions of the real estate and vehicle be considered "distributions in kind" which are then included on line 10 (for estates or complex trusts) of Schedule B on the 1041?

(assuming that a 1041 has to be filed)

[Burke]

You need way more than that to do the return. Were there other beneficiaries? Was there income from the time of death until distribution of the assets? As taxea said, were any bank accounts, money market funds, CD's, etc titled Transfer on Death to certain bene's? If so, these are not part of the estate and do not go on the 1041. Who paid the funeral expenses? Was an EIN applied for? Was a will probated? If so, you need a copy of that, the death cert, and the appt of executor. Was an inventory filed? Was an accounting done for the court? Was there life insurance and/or IRA's, pensions, which did not name bene's and would have been paid to the estate? Was an RLT involved?
I can think of a lot more.

[taxea]

And you need a copy of whatever the document was that allowed the distribution of these items. It should tell you the reason why they were distributed to specific heirs and whether it was a TOD item.

[Burke]

That would be the will, or in the case of an RLT, the trust document.