My mother-in-law passed away last year and father-in-law past away the previous year, leaving the estate to my mother-in-law. Is my wife (executor) required to file both an Estate Return AND last years personal tax return, or does the Estate cover both?
No. There is no need to add your father in law to the estate. All holdings belonged to your mother in law after his death and therefore you only need an estate tax return for her. And as you understand, her personal income tax return for 2023.
I send my sympathies to you and your family.
The new executor of your father-in-law's estate will file the 1041 for that estate and finish wrapping things up. Your mother-in-law's return needs to be filed by her executor or personal representative. There may be a new estate for your mother-in-law or the two estates could be rolled into one. It may be a final estate return for father-in-law and a new estate return for mother-in-law. You just need to be sure that each tax entity is accounted for and filed. You may want to speak with the lawyer handling things if you don't know what you have and who is in charge.
It could be that your wife is the responsible party for both. .The IRS has a quick How Do I File a Deceased Person interactive assistant. It is very detailed and may give you additional information.
For additional assistance, please refer to Publication 559, Survivors, Executors, and Administrators.
To file an estate return or two, use TurboTax Business.
I am very sorry for your loss.
Thank you for your response. I'm confirmed on the two separate filings (personal and estate); however, rolling the two estates into one prompted another question. As background, my father in law passed November 2022, and my mother in law passed February 2023. There was no estate created for my father in law as all assets went to my mother in law. Can I simply add my father in law to my (Turbo tax Estate) mother in laws Estate filing? We did complete a final tax return for my father in law for 2022. Thank you.
No. There is no need to add your father in law to the estate. All holdings belonged to your mother in law after his death and therefore you only need an estate tax return for her. And as you understand, her personal income tax return for 2023.
I send my sympathies to you and your family.