Closing an Estate

[S&D Associates]

When you distribute the remaining money in an Estate, who pays the tax? The 1099-R will show the deceased, but the check will be written to the beneficiary,

[ATSMAN]

It is up to the trustee. Generally any tax obligation is passed on to the beneficiary via K1.

[TAXNJ]

When you distribute the remaining money in an Estate, who pays the tax? The 1099-R will show the deceased, but the check will be written to the beneficiary,

Sounds like this maybe your first look at Estates. For good explanations and examples see TheTaxBook starting at 21-16 Income Distribution.

[Lion]

Also, read the will. And, check your state regulations.

[Burke]

When you distribute the remaining money in an Estate, who pays the tax? The 1099-R will show the deceased, but the check will be written to the beneficiary,

Do you have a 1099-R? You said "will show" the deceased, so is it money paid out by the custodian in 2020? Was the check made payable to the beneficiary by the custodian? Or was the check made payable to the estate? If there was a named beneficiary on the account, it should have gone directly to that person and will be reported on that person's individual 1040. The 1099-R should show the recipient's name and SSN/EIN, not the deceased's. If there was no named beneficiary, the money goes into the estate as taxable income as shown on Form 1099-R. When all income is received and expenses paid, the executor/administrator handles the disbursement of the estate's funds and signs the tax return. If it goes through the estate, each bene/heir will receive a K-1 to determine their taxable amount.