MFS with estate K1

[kathyc2]

I just received a call from a new client and looking for verification of my thinking.

They were separated in 2017 but divorce was not final. She wants to file MFS for liability reasons. Her only income was around 10K W-2. Husband has a substantial inheritance, with a K-1 that could reach into the 100's of thousands. Am I correct that the tax liability from the K-1 would be strictly his and he can not do something such as nominee part of it to her?

[Burke]

Yes, you are correct. He cannot "nominee" any part of it to another party if it was solely in his name. The K-1 reports only income earned and subsequently taxable to the beneficiary, not the principal of the inheritance.

[kathyc2]

I didn't think so, but then started second guessing myself. Thanks for the confirmation.