Unless there was a slipup in the Court Order it provides for how any later occurring income or assets are to be distributed. It is not inappropriate for the former administrator/executor/trustee to endorse the check over to the beneficiaries. The income paid must be reported on the beneficiaries income tax return based upon the amount of 'income' received. Payments which are distributions of principal from the estate -- not earnings -are not income taxable.
If this was an estate tax taxable estate and the payment is a return of principal -- then an amended return may be needed.
Very truly yours,
Joel S. Weissler
Attorney at law
Weissler Law Group
3333 Camino Del Rio South #235
San Diego, California 92108
Phone: (619) 281-1888
DISCLAIMER: Nothing in this post or transmitted by email should be interpreted as legal advice unless I have been retained and you have made a deposit towards my fees. This post is intended to help the person posting the question to ask the right questions with the attorney of their choice. This posting is for educational purposes only. Your time to act may be very limited and this could substantially reduce your rights and options. Do NOT rely on anything I have written here -- You should contact a lawyer in your area immediately after reading my posting.
The following disclosure is required pursuant to IRS Circular 230: unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.
