Client Died Before I Finished Her 1040

[Lion EA]

I apologize, but I need a crash course! I'm at a biz client's site in another town. Client's daughter sees estate attorney today and wants copies of returns.

Client had cancer and gave a POA to her daughter. I was working with daughter, in fact sent her return to sign, but she didn't want mom to pay and wanted to look for more medical deductions.

Client died. Then daughter gave me more medical deductions.

What do I need from daughter now to continue working with her? Court appointment? Or client's will designating daughter as executor? Or, can she be just a "family member" or beneficiary or...? I'll need Form 1310, is that even if we apply 2023 refund to 2024? Death certificate? Will this be a paper/mailed return?

Thank you! 

[jklcpa]

Daughter needs to give you the short certificate that designates her as executor to act on behalf of estate, or the court appointment if she doesn't have the short certificate. You know POA died with the mom, so once daughter gives you whichever document grants her the authority to act on behalf of the estate, only then will you be able to work with her again on behalf of mom and mom's estate. At that point, you could choose to have her sign a release to provide copies of returns directly to attorney, if you are comfortable with that. Otherwise if not, you will provide daughter with extra copies that she will provide to attorney herself. I don't see how you could possibly provide either of them anything today since those returns are not yet completed.

Sorry, can't answer about the paper vs e-filing. Depends on what document you get. Check instructions for form 1310. There was an extensive discussion a couple of months ago on here. I'm not in office right now or I'd look it up for you. Maybe later tonight I'll have time to revisit this discussion.

 

[Medlin Software, Dennis]

Depending on the legalities, there may be no formal admin or executor. There may be what will often be called a small estate, where the heir(s) can do things without court involvement. Since the OP mentioned an estate attorney, then it would be wait for court doc showing admin or executor powers. Took me about 60 days to get those the last formal estate I was part of.

[Lion EA]

Thank you very much, Judy and Dennis. That's what I need to know to contact daughter.

Yes, the POA is done. I'm at a biz client's site today (and have a colonoscopy tomorrow!) but was going to finish mom's returns Friday and contact daughter with what doc I need from her in her new position. With daughter's email to me this afternoon, I thought I better get some quick advice on what I need to ask from her to then be able to file mom's returns. Thanks to you, I know what to ask for.

I remember that discussion, so I will look it up tonight. Thought I'd do all of that Friday, so feeling stressed. Client lived in CT near me, but daughter's in FL. When all the paperwork is in place, I might just upload the returns to her to print, sign, and mail.

 

[Sara EA]

A lot of estates don't go through attorneys or Probate.  A personal representative, usually a family member, takes responsibility for tax filings and signs the returns as such.  I don't demand documentation to deal with them if I already know them.  If there is a refund and an administrator will be appointed, you do need the court appointment to file the 1310 but not to just deal with the person filing the taxes.

[Lion EA]

At the end of March, in the midst of her battle with cancer, my client telephoned me to say she wanted to do everything herself and not to give her children any information.

At the beginning of April, my client was distraught that none of her children were willing to be executor of her will, that her lawyer would charge her $600/hour to do so, and that she was searching for another professional executor, such as someone at her broker's office.

At the end of April, I receive an email from my client's account with the Subject line "Jane Doe is my daughter and I want to have full access to my accounts: all stock quotes, other accounts in order to make appropriate tax end decisions concerning taxes"  Her daughter has since then used her mother's email address to email me, and uses her own email as well.

At end of May, her daughter sent me a copy of a POA. My client apparently signed a POA to her daughter in 2022, but never copied me on it. That POA is done, because my client passed away a few weeks ago. I include this in the timeline to show my uneasiness over who I should deal with for my client's 2023 tax returns on extension.

So you can see why I want to have all my ducks in a row!

[Lion EA]

I stopped working. Waiting for daughter to provide me a document appointing her executor.

CT. CT does have a %; however, I suspect it doesn't apply to lawyers! This client had a LOT of investments and a house on Long Island Sound, so the % would be a LOT of actual $$.

[jklcpa]

Please wait for the short certificate or court appointment. If like here, that should take a week or two for the executor to receive, if not in hand already by daughter since you know she met with the attorney yesterday.

In the meantime, accept whatever additional medical deductions from the daughter and have it ready to go, but don't discuss the return in detail until you know that this is the daughter also acting as executor. Just say it is in your queue to work on.

ETA - saw you are waiting for the document. You are on the proper course.

[Catherine]

You will probably be able to e-file once all the external paperwork is in place. Attach 1310 to return as a pdf, and also include the court appointment. They will send a check, no direct deposit, so they'll need to have an account for the estate that will accept that check. 

As Judy said, have it ready to go. You can accept more paperwork from the (former) POA daughter. You just can't tell her anything other than "I got the documents you sent me" until you have the official notice of her being able to act for the estate.