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slsurp
New Member

As executor for an estate, an insurance death benefit was issued to me personally, but needed to be disbursed to siblings. How do you handle that in Turbo Tax?

 
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DMarkM1
Expert Alumni

As executor for an estate, an insurance death benefit was issued to me personally, but needed to be disbursed to siblings. How do you handle that in Turbo Tax?

Typically, insurance death benefits are not included in gross income and are not even reported on a tax return except under special circumstances. 

 

Here is the IRS reference.

 

In those instances of actual income earned you would have received an income form such as a 1099-INT showing the income to report.  If the income was reported under your social security number but belongs to someone else, you would list the interest that you distributed as "Nominee Interest" in the "Investments" section the 1099-INT topic. 

 

Here is the IRS Topic discussion.

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