Decedent and incompetent spouse return

[Margaret CPA in OH]

Son is handling returns for deceased father (Dec. 2014) and incompetent mother (Alzheimer's). There are substantial refunds from federal and state. He will paper file and include POA for mother and personal representative for father.

The checking account was in the father's name and is still open but bank knows father is deceased. Must son receive paper checks? File 1310 although mother is still living? He hasn't gotten back to me whether his SSN is also on checking account but didn't think so.

Thanks

[Pacun]

Does the son have a bank account? use it if available.

[Margaret CPA in OH]

I'm sure he has a bank account but it wouldn't have mother's or father's name or ssn on it. Form 1310? When I've had a deceased spouse in a couple before, the survivor was competent so no issue.

[jklcpa]

If the bank account with the deceased father's name doesn't also include the mother's name, or the mother doesn't have an account anywhere with her name on it, then I think you are stuck with paper checks.  Form 1310 is only for a refund for a deceased person, and unless you are filing a separate return for the deceased father you wouldn't use this form.  If the federal return is joint, the incompetent mother still receives the refund as surviving spouse, and the son acts as her representative because he has the POA.

 

You haven't asked about the state. Does the state allow joint filing or have a form that allows for separate columns for TP and SP on one form, or must you file separate forms because the husband died?  Depending on that situation and the filing requirements, the son might be filing as executor for the deceased father if the state requires a separate return for him.

[Margaret CPA in OH]

Ohio follows federal filing and there was no estate. When house sold in the summer before dad died in December, all remaining money was gifted to son. He will file a gift tax return (he says) but the money has been used to pay for both parent's expenses. The idea was to spend down, if possible, but dad didn't make it. Bank account was in dad's name only after mother began her decline several years ago.

Thanks, Judy. I can finish this one off now and mail it out.

[Pacun]

A bank account is just a bank account and the money will be deposited even if under the dog's name.

[Margaret CPA in OH]

Ah, but I think if the ssn isn't on the account, at least some banks won't accept it. Identity theft or such, I think. It's not the name, it's the ssn.

[Pacun]

If the bank rejects, he will get a check 10 days later. I guess I don't complicate my life and I solve this issue on the spot.