Legal Question in Wills and Trusts in Texas

IRS Estate Questions

(1) As an executor of an estate under $1 million, am I still required to file certain IRS forms even if the person who passed away had no reportable income and hasn't filed in years. The estate has distributions to 3 beneficiaries amounting to over $300,000 total. Do distributions of cash from the estate need to be reported to the IRS?

(2)What is the purpose of obtaining a FED ID# if no IRS forms are required?

(3) How does a beneficiary file a Disclaimer of Inheritance and is it legal to pass that share onto other named individuals? Does the IRS need to be notified?


Asked on 10/30/03, 7:53 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: IRS Estate Questions

You have several questions. To answer the first two, it is not necessary to get a tax id# for an estate unless you plan on filing an estate tax return. It sounds like you probably don't need to file one, so you probably don't need the tax id#. Normally the executor would take care of filing a final income tax return for the year of the death and notify the IRS of the death and enclose a death certificate. I would go ahead and file a return even though it may not be required - for notification purposes. Depending on the reason for the disclaimer, it may or may not work. For example, to avoid having the money pulled into an ongoing bankruptcy, it would not work. The probate code has all of the information on procedures for the disclaimer.

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Answered on 10/31/03, 7:55 am


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