TAXMAN Posted June 7, 2016 Report Share Posted June 7, 2016 My brain is already cooked due to summer heat. Life insurance paid to the estate. No estate return required., But a (first and final 1041) is being required. Would the life insurance benefits be included in the 1041 as income to be passed out to the heirs? Beneficary on life ins forms said payable to the estate. Your thoughts please. Quote Link to comment Share on other sites More sharing options...
OldJack Posted June 7, 2016 Report Share Posted June 7, 2016 Remember the 1041 is a deceased/estate "income tax return" not a form to report distributions of assets. If it is taxable income to the deceased or estate then it is reported on the 1041 otherwise it is not. Quote Link to comment Share on other sites More sharing options...
SaraEA Posted June 8, 2016 Report Share Posted June 8, 2016 Life insurance is not taxable to the beneficiaries, in this case the estate. It may be included in state Probate filings, however, depending on the state. Quote Link to comment Share on other sites More sharing options...
OldJack Posted June 9, 2016 Report Share Posted June 9, 2016 The only form that shows actual asset distribution (other than taxable income) is the estate tax return which you say is not needed in this case. Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted June 9, 2016 Author Report Share Posted June 9, 2016 Total value of the estate was about 125k including a small life insurance paid to the estate. What was triggering the 1041 was dividends received and sales of some stock to pay out expenses during administration with some income left over. Quote Link to comment Share on other sites More sharing options...
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