Beneficiary question

[user17702236067]

At the time of her death our daughter was not married and did not have any children. She had an IRA for which she did not name any beneficiaries and she did not have a will. Therefore am I correct that there are no K-1's needed because there are no "beneficiaries" for purposes of the 1041? Taxes were paid at the time the IRA was distributed to her estate.

[DianeW777]

Not necessarily. The fact the taxes were withheld does not mean a return is not required and the withholding included on the estate return. A K-1 would be used for an heir, the person receiving the proceeds in the end.

If the IRA went into a trust or estate, then the Form 1041 would need to be filed if the amount was greater than $600 of income and or to receive the refund of tax withholding. The amount of the tax withholding is included on the estate tax return and pays the tax or receives a refund since it's likely all of the IRA will be distributed to an heir.  This assumes the money does come into your hands and is not lost.  

The withholding cannot be transferred to any beneficiary/heir, it stays with the estate return and is refunded to the estate even if if K-1s are used for you as an heir.

You may need to seek advice from an attorney so that the money is not lost, if this is a possibility.