Ask Terry Questions POA of now deceased brother in law

POA of now deceased brother in law

By Terry Savage on February 04, 2024 | Wild Card

I was my brother in law’s POA, he died in May of 2023. He left me some money through his bank, IRA,etc. do I have to file income tax return for him? When do my responsibility end? He was unmarried and had no children. Thank you for your response.

Terry Says

Did he have a will? Each state has a different level for filing probate. For instance, in Illinois there is no probate required unless the estate is over $100,000 (in assets owned solely, not jointly). If probate is required, you should hire a probate attorney.

You should file a 2023 tax return only if he had income over $15,700 in 2023. In that case, you would file a return for the “estate.” And a probate attorney would help you do that.

The money he left you in the bank is yours — no tax due.
As for the IRA, you should give the custodian for the IRA a copy of the death certificate, assuming you were the named beneficiary, and move it into an “inherited” IRA –which will be subject to withdrawals and the custodian will explain your options.

Your responsibility ends after probate (if necessary) and after a final tax return is filed, and all assets have been distributed.



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