When my mother passed away in January a memorial account was set up in her name with monies donated to the family. As executor of this account do I claim these funds as income on MY taxes or is it claimed on HER 2007 taxes? Thanks for any help and advice.
2007-11-02 11:10:30 · 4 answers · asked by faerie.tattoo 2 in Business & Finance ➔ Taxes ➔ United States
I am not executor of her estate just the one in charge of the memorial account. Does this make a difference?
2007-11-02 11:47:26 · update #1
The account was set up as a business account when opened because we are using the money to make donations and plant trees in her name. So, I was given an employer ID number when opening the account, does this make a difference?
2007-11-02 11:50:52 · update #2
The funds donated are not taxable, they are gifts. The bank will send you a 1099INT for the interest that the account has earned.
If your Social Security number is on the INT, you can put the interest as income on your own tax return. However, if the interest income is being distributed to other persons, then you may indicate that portion as "nominee" interest to those parties that are receiving the interest income. The nominees would then include their share of the interest income on their tax returns.
If the SSN on the 1099INT is your mother's SSN, and your mother died in 2007, then the interest income for 2007 will be included on her final tax return in 2007. In future years, the interest income would be included on her estate tax return, if one is required. Taxes would be paid by your mother if on her final tax return, or by her estate in years after her death.
If you as executor fail to see that the taxes are paid properly, you may be personally liable for those taxes.
2007-11-02 11:36:01 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
I would have thought that since the funds were the proceeds of a deceased estate, and the earnings are going to the family, it should have been set up as a family trust. You need to see an accountant, not ask questions on a web site.
2007-11-02 11:27:06 · answer #2 · answered by David L 2 · 0⤊ 1⤋
Just guessing here. I think that the memorial would have to file its own tax return.
2007-11-02 11:34:35 · answer #3 · answered by Steve 6 · 0⤊ 0⤋
call IRS tax law at 1-800-829-1040 to answer your question.
2007-11-02 17:34:59 · answer #4 · answered by Ms. Angel.. 7 · 0⤊ 1⤋