Hi! My mom passed away in 2023. She left everything to me as her only child/sole beneficiary. The house which was fully owned (and it's contents which were not much after a break-in) was transferred to me automatically. Her bank account was transferred to an estate bank account once I became administrator of the estate. I paid her medical bills that remained. I paid the attorney for his work (more than it was worth in hindsight because they don't seem to know what they're doing). Then I paid myself the remainder, as instructed by the attorney. as the sole beneficiary. In that time, there was no income to the estate. I live in a different state than she did and where the property that I inherited exists. Supposedly since I am her child there is no "tax" on the money that I inherited or the property. However this even seems unclear after speaking with the attorney and "tax pro."
She had 2 life insurance policies. One was to cover the exact amount of her funeral and paid directly to the funeral home apparently. The other was an included benefit of her state pension and was initially payable to her brother. However, he passed away a couple years before and she never updated the beneficiary, so that was paid directly to the estate. It was a small $5,000 policy with 10% withheld in tax from payment to the estate. I received a 1099-R for this payment. This is where I'm unclear...
As far as I can tell, that life insurance payment to the estate is not income. There was nothing else received in any amount. Can anyone help me with what I need to file, if anything, for the estate and personally? I spoke with 2 different "tax pros" and got at least 3 different answers.
Any help is so appreciated.
