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It depends on if it is a simple trust (all income must be distributed to the beneficiary(s)) or a complex trust which could be worded in any number of different ways. So essentially it can vary from trust to trust and you would need to have *your* trust read by your accountant or attorney in order to find out how the income is to be allocated.
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∙ 12y ago
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Is an executor of a will able to handle the estate of a beificiary?
No. If the beneficiary dies their estate must be probated in a separate action.No. If the beneficiary dies their estate must be probated in a separate action.No. If the beneficiary dies their estate must be probated in a separate action.No. If the beneficiary dies their estate must be probated in a separate action.
Can a beneficiary sell the estate?
A beneficiary does not have the right to sell the estate. Only the executor can sell property.
What happens is a beneficiary die's but there are other beneificiaries before an estate is settled?
The beneficiary's share goes into their own estate.
How do you report 2008 dividend income for a spouse who died in 2007?
It depends. Money can't really be paid to a deceased person. It can be paid to their estate or perhaps a co-owner of the shares or a named beneficiary. If the dividends were paid into the estate of the deceased spouse, then the estate should have its own Tax ID number and the income should be reported on the estate's tax return. The payer should be notified of the estate's tax id number and should be asked to reissue the 1099-DIV with the estate's tax id number. If the dividends were paid to someone else, for example a co-owner or beneficiary, the co-owner or beneficiary that received the dividends should report them on their own tax return. If a 1099-DIV was issued with the deceased person's SSN, the real technical answer is that the payer should be asked to reissue the 1099-DIV with the correct tax ID number (either that of the estate or that of the person who was entitled to receive the dividends). In practice, it can be difficult to get this done and this situation is handled more informally. If the amounts are large, the person handling the dividends should issue a new 1099-DIV naming the deceased as the payer and the person (or estate) that received the dividends as the payee. If the amounts are small, everybody who received the money just reports it on their own tax returns. A "large" amount would be one that would require the deceased person to file a tax return if they were still alive.
How does a beneficiary know if he has to add this money to an estate?
The only reason a beneficiary would add money to an estate would be if they owed money to the estate at the death of the deceased.
What type of tax is levied on the beneficiary share of an estate?
The type of tax that is levied on the beneficiary share of an estate is known as inheritance tax. This will be assessed based on the legacies the beneficiary receives.
Can an estate be a contingent beneficiary?
Yes.
Can a beneficiary be an administrator of an estate?
Yes.
Is money received as a beneficiary from an estate taxable?
Money received as a beneficiary from an estate is not considered taxable. Money that is left on behalf of an estate is an inheritance and is considered to be tax free.
Is Life Estate part of the deceased's estate?
If life insurance is payable to a beneficiary other than "the estate of ...[the decedent]", proceeds are payable directly to the named beneficiary and do not normally become part of the estate. However, if the designation of beneficiary of the life insurance policy is the estate of the decedent, proceeds do usually become part of the estate.
Is a parent the beneficiary of their child's life insurance?
This all depends on who took out the life insurance policy and who was named as the primary beneficiary at the time. The primary beneficiary is named within the policy document. The primary beneficiary may or may not be the father and/or mother. If the primary beneficiary is deceased, then check the policy for a named contingent beneficiary. If there are no named beneficiaries living, then the policy proceeds become part of the policy holder's estate. Please consult with a qualified attorney, to determine guardianship of the child's estate. Ask the insurance agent and a lawyer for a free consult to be sure.
Can an attorney be both the attorney for the estate and an individual beneficiary of the estate?
Yes.
