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Nemor
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What to do  Reply with quote  

Here are the facts:

I am terminally ill and will be dead within 40 days

I sold my house and netted $106,000. Out of that, I wrote a check to my son as a gift for $100,000.

I also cashed in my 401(k) rollover account in the amount of $58,000.
Did not take out the 10%.

My annual social security income is $21,804.

I have no other debt.

If I die in July of 2015, what information does my son (as my executor) need to gather, as he will need to file taxes on my behalf, plus penalties?

Thank you so much.
Post Sat Jun 20, 2015 4:20 pm
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oldguy
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He needs the info on the IRA. He will file a final 1040 for your estate, the IRA will be taxable income, that will need to be paid out of the estate. SS will send a 1099 at year that shows the amount of SS received - part of that is probably taxable income. The $106,000 from the sale of the house is tax free.

The funeral parlor will contact SS and get the SS checks stopped, often the last one will get to your checking account, and the executor will need to return it to SS.
Post Sat Jun 20, 2015 6:18 pm
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Nemor
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Cash: $ 1.60

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Joined: 10 Jun 2015
Location: Vancouver, WA
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I will be dead by July or August.

Am also renting an apartment.

My son lives in MA, I live in WA state.

How will my son be able to get the 1099 form for the withdrawn 401(k) rollocver and my ss statement? Can he just call them? I did not have any taxes taken out of the 401 rollover close-out.

I just don't want my son to endure much hardship dealing with all this in 2016.

What about the $100,000 gift to him, is that income to him, will he have to pay taxes on that?

I, as the donor, do I have to pay taxes on that gift?

Thank you.
Post Sat Jun 20, 2015 6:23 pm
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Nemor
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PS - There is NO funeral parlor. My body is being donated to science, Oregon University.

How long before Death Certificate is available for my son to order please?
Post Sat Jun 20, 2015 6:26 pm
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oldguy
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The University will notify SS when they take possession of the body. The death certificate will be mailed to the executor in about 2 to 3 weeks.

No, no taxes on the gift.

The 1099's will be mailed to the executor if he is on the Will and listed as the beneficiary on the documents.

quote:
I did not have any taxes taken out of the 401 rollover close-out.


Doesn't matter, the withholding doesn't affect the amount of tax bill, it only changes when they are paid, in this case it will be April 15, 2016.
Post Sat Jun 20, 2015 7:01 pm
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Nemor
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???  Reply with quote  

My most curious of all questions is:

HOW DO THEY FIND OUT WHO IS MY EXECUTOR?

Of course it is my son, and he is also named as beneficiary on my 401(k) but I do not recall if they asked for his address?

Far as my SS, when the university sends out Death Certificates, how will they know wherre to send them?

I wish we could talk, person to person. Can you email me personally? I am in dire needs and am stressing out.

Thank you.
Post Sat Jun 20, 2015 10:15 pm
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