@snsa wrote:
...I've read that her tax return should report income received up to the date of death and the financial institutions upon request would issue a 1099INT or DIV to the beneficiaries to report on there own return.
The problem with that is the income has to be split according to the date of death and, more importantly, the beneficiaries need to be identified if the account does not specifically name them.
The financial institutions simply do not want to devote resources to that endeavor, not to mention the liability if they include the wrong beneficiaries (or exclude the right beneficiaries).
