Deceased parent income before estate created

[rajivanna]

Hi,

My mother passed away in November 2022 and it took about 6 months to get through probate.  Her estate was officially created in June 2023 and I am now having to file the 1041 for the estate.  The assets in the estate were distributed pretty quickly (by September).  So not a lot of time for the estate to generate any income.

How do I report the investment income that was attributed to my mother from Nov 22 - June 23?  I got a consolidated 1099 from TD Ameritrade listed under her SSN.   Is that part of the 1041?  Or is that part of the form 706 for the estate?

Thanks.

[Anonymous_]

I am sorry for your loss.

However, the estate technically comes into being as soon as the decedent passes. As a rssult, the estate can begin accruing income after that date and until it is terminated. The division of income needs to be made based on that date.

[rajivanna]

Thank you.  That makes sense.  The date the estate EIN number was assigned is not actually important (other than dictating when the 1041 is due?).  Is that fair to say?

[Anonymous_]

Correct. The EIN could be applied for and assigned days, weeks, or months after the death of the decedent. 

It's the date of death that counts.

[DawnC]

Form 1041:  Estates or trusts must file Form 1041 by the fifteenth day of the fourth month after the close of the trust's or estate’s tax year.  

The estate calendar year typically starts on the day of the estate owner's death and ends on Dec. 31 of the same year.   The executor, however, can file an election to choose a fiscal year instead.   A fiscal year means the tax year ends on the last day of the month before the one-year anniversary of death.

[Anonymous_]

Trusts are typically required to use a calendar year (notable exception would be when a Section 645 election is made and, occasionally, that is why that election is made).

Any tax year that does not begin on January 1st and end on December 31st is a fiscal year. For federal income tax purposes, calendar years being on January 1st and end on December 31st.

An executor/administrator of an estate can generally select the start of the estate's tax year based on when income is received or expenses are paid (i.e., the estate's tax year for the purposes of filing Form 1041 does not necessarily have to begin on the date of death of the decedent).