how do I know when to consider an estate "closed"

[vze56v6x]

what is the standard in determining when an estate is considered "closed". This is a small family estate with 1 beneficiary. The last check was written from the estate bank account in early May of this year leaving that account now at zero. I plan to go close the estate bank account this week since it is no longer in use.

Is the estate considered closed based on the day you close the estate account or is it a date I can choose?

Also I believe we have 4 months to file the 1041 from the date the estate closes, correct?

Thanks

[Anonymous_ · Accepted solution]

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@vze56v6x wrote:

.... believe we have 4 months to file the 1041 from the date the estate closes, correct?Thanks

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That is correct; the 15th day of the 4th month following the close of the tax year (if the estate adopts (or has adopted) a fiscal year). 

See https://www.irs.gov/instructions/i1041#en_US_2021_publink1000285977

[Anonymous_]

See https://www.law.cornell.edu/cfr/text/26/1.641%28b%29-3

An estate will be considered as terminated when all the assets have been distributed except for a reasonable amount which is set aside in good faith for the payment of unascertained or contingent liabilities and expenses.

Note that the period of administration of an estate cannot be unduly prolonged.

[Mike9241]

surprise. technically an estate never closes rather you have made a final distribution of known trust assets.

see this thread. there are other similar threads

https://www.survivedby.net/how-to-close-out-an-estate/#:~:text=An%20estate%20is%20never%20really%20c... 

one could argue that the 1041 is due 9/15 which is the 15th day of the 4th month after the month (May)  in which a final distribution took place

or

one could argue that the 1041 is due 11/15 which is the 15 day of the 4th month after the month (July) in which the bank account was closed 

see what others say

if it is concluded that the year ended early you would need to use 2021 forms with a fiscal date 1/1/2022 to xx/xx/2022

[Anonymous_ · Accepted solution]

It does not really matter much, but the Regulation does states that an estate is considered terminated when all assets have been distributed.

[vze56v6x]

Thank you everyone. This helps