My son is the executor and sole beneficiary of his mom’s will. She passed away late last year and I’m helping him navigate the execution of the will. I understand that if all financial accounts list him as the sole beneficiary with “payable on death”, then the assets transfer directly to him and there’s no need to to file form 1041. Unfortunately, it’s not clear on a couple of the accounts whether he’s named sole beneficiary with “P on D”. At least one of the investment firms is saying it could take 3 to 4 weeks for them to investigate and provide an answer. He’s going to request an extension on filing returns for both him and his mom until this is cleared up. The question we have is whether he should file an extension for filing form 1041 for the estate. If he requests an extension on the 1041, but then it turns out a 1041 isn’t required, won’t the IRS eventually come after him for it? On the other hand, if he doesn’t request an extension for the 1041 and it turns out one is required, he’ll face a penalty for late filing. Any insight into the best way to handle this would be greatly appreciated.
"one is required, he’ll face a penalty for late filing."
when in doubt, request an extension.
There should be no reason to delay your own or your mom's final tax return, anything reportable on a 2024 tax return already happened.