Executor Fees

[taxdan]

Being new to the 706 prep area, does anyone know if an estate/trust has to issue a 1099-misc to an executor for any fees being charged to the estate? I would assume so, but just wanted to be sure. Most of the estate falls within the living trust that was set up prior to decedents death. The executor is one of the 3 adult children that are equal benis of the estate.

Thank you for any advice!

Dan

[joanmcq]

I am assuming you mean fees paid to the executor for administering the estate. If so, I would, especially if the fees are over $600.

[taxdan]

I am assuming you mean fees paid to the executor for administering the estate. If so, I would, especially if the fees are over $600.

Yes, the fees would be for administering the estate. Thank you, I will definitely suggest that a 1099 be issued.

[kcjenkins]

But be sure you use box 3, not box 7.

[taxdan]

But be sure you use box 3, not box 7.

Good point. Thank you!

[kcjenkins]

You're welcome. It's amazing how often that mistake is made, and then you have to go back and do a corrected one after the executor goes to his or her preparer, and the issue of SE tax comes up.