Читать книгу Form 1041 - Stephen Brooks - Страница 43

Mr. Warren dies with the following assets with fair market values as indicated:

Mr. Warren's will provides that his estate will be divided into equal shares and distributed to his four children. Under the will, Mr. Warren's son, James is appointed executor of the estate. His probate estate will consist of all his assets except the life insurance and the IRA — these two assets will be distributed according to their designations of beneficiary and not under the terms of Mr. Warren's will. As the executor of Mr. Warren's estate, James will have the responsibility to take control of the probate assets, and make sure they are maintained during the period the estate is being administered. He will also have to pay from the probate assets any debts which Mr. Warren owed at the time of his death, and any costs of administering the estate out of the probate assets. He must also collect any income earned on those assets during the period of administration of the estate. This income offset by allowable deductions is the income reportable on the estate income tax return during the period of administration of the estate. At the end of the period of administration of the estate, the executor will distribute the remaining probate assets to Mr. Warren's four children in equal shares as provided in the will, and the estate will be closed.