I transferred $ from my husband to me 2 years after his passing. Should the distribution be reported as Tier 2 (lands schedule I line 37 - not on K-1) in TurboTax bus?

[liliandjeff]

I transferred $ from my husband to me 2 years after his passing. Should the distribution be reported as Tier 2 (lands schedule I line 37 - not on K-1) in TurboTax bus?

[GeorgeM777]

Need you to clarify and provide additional information.  Did you and your husband have a business?  If so, what type of business did you have, i.e. Partnership, S-Corp., etc.  Also, if the money that you transferred to yourself come from your husband, did it come from his estate, or a trust?  

@liliandjeff

[liliandjeff]

No business.  Husband had a trust and filed 1041 with EIN to report interest and dividends in 2020 and 2021.  The trust contained a provision allow combioning like trusts.  Hence, it was a trust to trust transfer.  Thanks

[liliandjeff]

No business.  Husband had a trust and filed 1041 with EIN to report interest and dividends in 2020 and 2021.  The trust contained a provision allow combioning like trusts.  Hence, it was a trust to trust transfer.  Thanks

[Anonymous_ · Accepted solution]

If it was corpus (principal) that was transferred (distributed), then it does not have to be reported at all.

Otherwise, you can report it as a second-tier distribution (together with any other income that was not required to be distributed).