Taxable to Whom?

[Dave T]

My father passed away in August of 2019 after being in a nursing for some time and was paying the daily self pay rate so shouldn't have any tax liability for the year.

At the time of his death he had a fair amount in the bank and in non-qualified investments. As of now his estate has not been established so am wondering how any dividends, capital gains and interest are taxed  for those earnings subsequent to his passing until the estate has been finalized. 

Thank you for any assistance with this.

 

Dave T

 

[Terry D EA]

First let me say that I am sorry for your loss. Loosing a parent is tough. Estate laws differ from state to state so I may be off a bit here. Obviously you know the investments and cash in the bank is all part of your father's estate. The interest & earnings that accrued after his passing are part of his estate. Any uncollected earnings prior to his death are income in respect of a decedent and would be reportable on form 1041 if it was not included in his final 1040. 

I found the link below and don't know if it will help you or not when making decisions regarding your father's estate. Also, I see you are in NY so I am assuming your father may have been a resident of NY as well.

https://bhlawpllc.com/wp-content/uploads/2015/08/NYS-Executors-Guide.pdf