My mom just passed away Friday, my sister is her estate executor, and she asked me some questions that I thought BHs could help me answer. My sister had my mom's POA and continues to have my dad's. She knows I'm posting this and she'll read the responses. My parents and the two siblings mentioned below live/lived in California. Thanks in advance for your help. Our questions:
1) Our dad is still living and the estate is in a trust; is there any reason why it would make sense for him to file his 2025 taxes as Married Filing Single? We didn't think so, but someone else suggested it.
2) As POA, my sister has been gifting another sibling funds from both my parents for being especially helpful. All siblings agree this should be happening. The question is, since my mom died in January, can there still be one gift from my mom and another from my dad for this year? If so, would there be a limit on the gift from my mom (beyond what must be reported for estate tax purposes)?
3) Finally, all siblings agree that my sister who is both POA and executor should have compensation for the financial and logistical work she's been doing over the past few years. Is there a way for her to essentially "pay" herself from the trust/estate that doesn't involve her becoming an employee? If so, what's the best way to do that?
1) Our dad is still living and the estate is in a trust; is there any reason why it would make sense for him to file his 2025 taxes as Married Filing Single? We didn't think so, but someone else suggested it.
2) As POA, my sister has been gifting another sibling funds from both my parents for being especially helpful. All siblings agree this should be happening. The question is, since my mom died in January, can there still be one gift from my mom and another from my dad for this year? If so, would there be a limit on the gift from my mom (beyond what must be reported for estate tax purposes)?
3) Finally, all siblings agree that my sister who is both POA and executor should have compensation for the financial and logistical work she's been doing over the past few years. Is there a way for her to essentially "pay" herself from the trust/estate that doesn't involve her becoming an employee? If so, what's the best way to do that?
Statistics: Posted by headedwest — Tue Jan 21, 2025 2:48 pm — Replies 20 — Views 577