Form 1041

Forum|Forum|1 year ago
March 31, 2025
2 replies
1 view

My mother left money to her grandchildren and assets to my siblings and I, who disclaimed part of these assets in favor of our children. As Executrix, when I fill in form 1041 it asks for the names, social security numbers and amounts the beneficiaries received. Do I post just the cash distributed or do I include the value of the assets/shares/etc?

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RobertB4444

Level 15

You will post cash distributed as well but that is not a taxable entry. It just shows the movement of cash that has already been taxed. The K1s show each beneficiaries share of any taxable income - earnings that the estate had after your mother died. Those are the only important entries.

@chichi523

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chichi523Author

Level 2

Since the assets were distributed at the end of the year, all the taxes have been incurred by, and paid by, the Estate. From what you are saying, I need only enter the cash which has been moved from the Estate to beneficiaries. Let me know if I understood you correctly - and thank you for your speedy replay

RobertB4444

Level 15

No. What you need to enter into the return is the money that the estate earned after your mother died. Did your mother's estate earn any money? Any interest or payments made to her estate after she passed?

@chichi523

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DavidD66

Level 15

A K-1 is a tax form filed to report income, deductions, and credits for pass-through entities. The purpose is to communicate to the beneficiaries the amounts they need to report on their individual tax returns. If none of the income was distributed to the beneficiaries, none of it would be reported to them on the K-1 as a distribution of earnings. If you didn't make any distributions of taxable income or gains then you you would not report it on the K-1s. Unlike a partnership or an S-Corp that also report income, deductions, and credits on Forms K-1, beneficiaries of an estate or trust do not have a taxable basis that needs to be tracked, so non-taxable distributions of principal and cash do not need to be reported.

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