To contribute back to the community, helping others who may run into this in the future, here’s some additional information I found out about the mechanics to execute this:
- On i1099gi, “General Instructions for Certain Information Returns”, it guides me as follows, consistent with @dmertz's guidance. P2-3.
“Nominee/middleman returns. Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable to each. You also must furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the Internal Revenue Service Center for your area. On each new Form 1099, list yourself as the “payer” and the other owner as the “recipient.” On Form 1096, list yourself as the “Filer.” A spouse is not required to file a nominee return to show amounts owned by the other spouse. The nominee, not the original payer, is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.”
- Mom (“Payer”), meaning me as her Personal Representative, needs to fill out a new 1099-R for the amount (payments #2, #3) that needs to be distributed to Kid #3 (“Recipient”) and send Copy B, Copy C, and Copy 2 (at least) to Kid #3 by 1/31/20.
- The really odd thing is that the IRS doesn’t have a fillable document 1099-R Copy A (I need to file with them with Form 1096, also unavailable online), so I had to order a physical, scannable copy of each online. The deadline for me to mail a physical, scannable version of Copy A, along with Form 1096, is 2/28/20 (3/31/20 if filed electronically, which I don’t think that I have access to the software to do). I should receive the paper copy in the mail within 10 business days.
I trust that this will help others in the future.
