TOD beneficaries

[grandmabee]

CLient died mid year with a smith barney accout with TOD beneficiaries. Account was paid out to beneficiaries. But when we finaly track down the 1099 everything is reported under deceased client. I know everything before date of death goes on her final 1040 but all the sales of the stock was sold and paid out to beneficiaries. I don't know maybe because its the 15th and I am trying to get this done for filing today but shouldn't anything after date of death go the new owner of the account?

[Pacun]

CLient died mid year with a smith barney accout with TOD beneficiaries. Account was paid out to beneficiaries. But when we finaly track down the 1099 everything is reported under deceased client. I know everything before date of death goes on her final 1040 but all the sales of the stock was sold and paid out to beneficiaries. I don't know maybe because its the 15th and I am trying to get this done for filing today but shouldn't anything after date of death go the new owner of the account?

File a 1041 using the amount on 1099 as the income portion and then distribute to the beneficiaries the amount they received.

[grandmabee]

File a 1041 using the amount on 1099 as then income portion and the distribute to the beneficiaries the amount they received.

I know that but in this case the personal rep could not touch or get any informaiton from the accounts at smith barney. they said once she died the account went to the beneficaries named on the account. Which pers rep doesn't know. SMith barney said it did not go to the estate but went to named beneficaries. the 1099B is for about 69,000. but a overall gain about 3,000.

at this late date thinking of just claiming it all and be finished with it

[Kea]

Since the account was TOD, the amounts after DOD go to the beneficiaries' 1040s and not to the 1041. In a perfect world, Smith Barney would have reported amounts after DOD on the TODs' 1099s. But in reality the name / SSN doesn't get changed on the account until after the brokerage is notified which is typically a few weeks after DOD.

Also, remember the gains / losses on the sale of stocks was probably very minimal, because the basis will be from DOD (or alternative valuation). I'm sure the basis they reported was the decedent's basis, not the heirs'.

Hope that helps.