Discussion:$200,000 Might be coming to Estate well after the 706 due date
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Discussion Forum Index --> Advanced Tax Questions --> $200,000 Might be coming to Estate well after the 706 due date
Discussion Forum Index --> Tax Questions --> $200,000 Might be coming to Estate well after the 706 due date
| 13 September 2008 | |
| from insurance company for automobile accident-caused death.
706 was due 9 months after death and filed. IF the estate receives another $200,000 (I checked, it does not go to any beneficiaries), does the estate simply amend the 706 for another $200,000? I figure if there is a gap between the date of death and the actual receipt of the settlement check, then the full $200,000 does NOT go on the amended 7, right? Do we discount it using the IRS AFR for the waiting period? Also, how do you usually handle this -- do you include it on the 706 anyway to be "safe" -- that way you are not late with any taxes and can apply for refund or breakeven, OR do you leave it off and amend it later? thanks! | |
| 13 September 2008 | |
| Only certain types of wrongful death settlements are includible in the gross estate. For example, settlements for the pain and suffering or medical bills of the decedent would either be includible or offset against final medical bills shown on the debt schedule. However, settlements for lost future earnings would generally not be includible. See Rev. Rulings 69-8 and 75-127. If you are in a no-fault state, see Rev. Rul. 83-44. | |
