I just received a NJ check for unclaimed property several years after filing initial and final estate return for my mother.
The check includes both untaxable basis of stock that was unclaimed plus $5,000 of interest income. There is $1,500 for attorney probate fee to do the administrative proces.
The state paying out the funds has my mother’s social security number, not the estate EIN number and my social security number as executor of estate. The check was made out to me as personal representative of my mother’s estate.
My question relates to how to report the $5,000 of interest income and $1,500 expense. Should I do an amended final estate tax return showing the additional income and expense, do a new estate tax return or an amended final 1040 for my mother?
On the original estate tax return there was only income from an annuity that was paid out and distributed as K1’s to beneficiaries after expenses. There was no taxable estate income.
The distributable income on original estate return was $120,000. This additional net income is $3,500.
The $3,500 will be given to grandchildren along with the return of capital.
My effective tax rate is 32%. I will not be receiving any of the interest proceeds.
If could only show the net $3,500 on estate tax return the tax rate is 10%.
Not sure to what tax reporting number state will use but will find out soon.
Need advice please!
