Yes, if it does belong to you at this point. I was going by the timeframe however you can also nominee the amounts that belongs to any beneficiaries by using the instructions below and enter only your amount on your tax return. You will not enter the EIN for the estate but you can enter the account number if you wish, it's not required. I'm not sure reopening the estate is necessary but you must rely on the advice of your attorney. It's definitely up to you to decide if you want to pursue it depending on the amount of the account and the interest.
An estate return is not required if the income for the estate is less than $600, for federal purposes (Form 1041). If this is the case, then there is no purpose to open the estate. You have the records, the death certificate and any necessary documents the bank needs.
Nominee Returns. This is how the IRS knows what you are doing.
Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners.
File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)
- On each new Form 1099, list your mother or the estate as the payer and the each beneficiary, as the recipient. On Form 1096, list your mother or the estate as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each beneficiary.
The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here:
@JHW23
[Edited: 02/27/2024 | 3:04 PM PST]
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