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Discussion Forum Index --> Tax Questions --> Beneficiary
Bell (talk|edits) said:
| 21 March 2007
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| Got a client that received his deceased parent's pension after death. Parent had no taxable estate. The son is sharing this pension with other siblings. The 1099-R comes in his name. He paid the funeral expenses of father out of this money. I realize that this is taxable income to him. Should he declare this like you would nominee income and issue (1099-R's) to the other recipients. I'm thinking to take the funeral expenses he paid off Sch A misc. not subject to 2%. There was no other income for the father. Final return has not yet been filed, but it will be simple.
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Vbcpa (talk|edits) said:
| 21 March 2007
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| Was the son the only beneficiary of the pension? If not, why didn't the other siblings get their own 1099Rs - funeral expenses not deductible on his Schedule A
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Cwatt1 (talk|edits) said:
| 21 March 2007
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| If son is the only beneficiary, sharing it with the siblings is a gift on his part -- he can't nominee it off.
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Bell (talk|edits) said:
| 21 March 2007
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| So, if he decides to share it, it is a gift. All taxable to him. I did read that the funeral expenses can only be taken on the estate tax return. There won't be an estate return. This man died practically pennyless. There has got to be a place where I can reduce the beneficiary's income by the expenses he is paying on behalf of his father.
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Kevinh5 (talk|edits) said:
| 21 March 2007
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| You can, Bell. Get the brothers and sisters to pitch in for the funeral. That way it's not all on your client.
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Bell (talk|edits) said:
| 21 March 2007
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| Good idea. I always get these sad returns.
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Dennis (talk|edits) said:
| 21 March 2007
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| And suggest that siblings share of pension be after tax.
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Michaelstar (talk|edits) said:
| 22 March 2007
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| Agree with Dennis - it is the only fair method for all involved. They would have had to pay the tax had it gone to the other siblings directly.
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