Form 56 and 1041 questions

[Dijo]

My wife and her brother are executor of an estate of their sibling. The deceased only received $9,808 in social security income. No other income or assets. I filled out the 1041-ES for deceased tax payer per IRS instructions. My questions are: Do my wife and her brother have to file separate form 56's or can we send one with both names. Also, do I need to file a 1041; if so do we fill out one for the estate of do both executors have to fill one out? Thank you.

[Irene2805]

I'm sorry for your loss!

Form 56 - Notice Concerning Fiduciary Relationship

Both your wife and her brother have to each file this form if they are both considered fiduciaries.  Filing IRS Form 56 notifies federal agencies and creditors to send mail regarding the estate to the fiduciary. The main purpose of this form is to establish the trustee or fiduciary as responsible for the accounts of an estate.  The links to the form and instructions are included below:

• Form 56 - Notice Concerning Fiduciary Relationship
• Form 56 Instructions

Form 1041, U.S. Income Tax Return for Estates and Trusts

The fiduciaries have to file an estate tax return (1041) if the estate's gross income for the tax year is more than $600.  The return is for the estate, so only one has to be filed.

For more information please see the IRS:  Instructions for Form 1041

If you have to file an estate return (1041)  you will need TurboTax Business.  You can visit the following link to purchase the program: TurboTax Business.  

TurboTax will take you through an interview to prepare the estate return, similar to the personal (1040) products.

As part of preparing the 1041 return, TurboTax will prepare K-1 forms for each beneficiary and they need to enter the information from the K-1 into their personal 1040 returns.

[Dijo]

Thank you, and yes 1040-ES.

[Dijo]

Thank you.