Estate administrator charitable contributions

[khampton412]

My Mom passed May 2016. I am the administrator of the estate (no will). How do I claim a charitable donation for her things I am donating to Lupus foundation? Is it on the estate tax return or on a final tax return for her?

[bwa · Accepted solution]

I can't see the donation on Mom's final return as they were made after her death.  I also can't see them on the Estate tax Form 1041 (if one is required to be filed) as there was no will directing them to be made.  An Executor cannot distribute property in a manner other than the will or the State's intestate laws.

The items donated to Lupus would have first pass to the heir(s).  If they made the donation (and it sounds like they did), the deduction would be on their individual returns.

[ScruffyCurmudgeon]

Already stated, see answer 2 hours previous

[ScruffyCurmudgeon]

1. Since it was not your late mother who made or will make the donation, it would not be reported on the Final Form 1040 reporting her income and deductions up to the date of her death.  IF and ONLY IF your mother had indicated, preferably in writing and best if written in her will or trust, if one, can the donation be considered a charitable donation of her Estate. Because this IRS regulation is absolute, charitable deductions on an estate or trust income tax return are rare. If there is such documentation, then the donation is reported on Schedule A of the Estate's Form 1041.
   
   
2. Do not confuse the Estate's Form 1041 which reports income and deductible expenses from the date of death onward to the end of the year, and if necessary for the following year, with the Estate Tax Filing Form 706 which is only necessary if the total assFederal Form 706 - unless your mother during  her lifetime made so-called Lifetime Gifts and filed a Form 709 Gift Tax return.  States may require an Estate Tax filing for much lower amounts, dependent on the state of her residence.The Estate Tax filing does not report income but rather amount of assets held.
   
   
3. You might consider instead of having the Estate donate the items, allow the items to flow through the Estate to the beneficiaries, such as yourself, and then you or the beneficiary makes the deductible charitable donation.  NOTE: The items then would be included in the calculation of the size of her Estate, but if less than the $5.45M, this might make most sense.

[dmertz]

Without a will or trust, I don't see that there is any possibility for the estate to take a deduction for a charitable contribution.  To be deductible, IRC § 642 requires that the contribution be made "pursuant to the terms of the governing instrument."

[ScruffyCurmudgeon]

I said that!   To quote: " IF and ONLY IF your mother had indicated, preferably in writing and best if written in her will or trust, if one, can the donation be considered a charitable donation of her Estate. Because this IRS regulation is absolute,"

[dmertz]

As worded, that statement is not explicit that the indication *must* be part of a will or trust agreement, so I provided additional clarification.

[ScruffyCurmudgeon]

"If and Only IF?"