Deceased Stimulus check returned to IRS question

[Drake3287]

Okay, I know this is a shot in the dark but has anyone returned a $1,200. stimulus check to the IRS and not have it cashed/deposited?

My elderly mother who passed away in early January of this year had a $1,200. Stimulus check automatically deposited in her checking account. Shortly afterward the IRS came out officially asking for people to return these mistaken checks and included directions on how to return the money.

Being the Executer of her estate I found it easier to return it then deal with IRS down the road. Not worth the headache or an IRS letter.

Sure enough I wrote out a check from her old checking account I'm still using for estate business and attached a note describing the situation. Exactly what they requested I do. It's been months since I sent them this check and you guessed it, they haven't cashed it!

I can't even close out the bank account until they do. And to make matters worse, if the government ends up sending out another round of stimulations checks you know darn well my deceased mother will get another one and this will start all over.

Don't ever offer to be an Executer of an estate! Worse, thankless job ever.

 

[Big_Hitter]

Don't ever offer to be an Executer of an estate! Worse, thankless job ever.

I thought executors were compensated?

 

[Drake3287]

I thought executors were compensated?

Unless you badly need the money it’s not worth it as I’m sure many will agree with. It’s basically a part-time job when you really don’t want one. Throw in the Covid-19 situation and it’s even harder.

Nothing but roadblocks along the way including the IRS. If you have a sibling handle your parents estate consider yourself lucky!

 

[Katsmeow]

I was the executor of my mother's estate. She died in 2018 but I filed a return for her for that year. It was filed from an estate account. I received a stimulus check for her which I did nothing with. I didn't deposit because I had already closed the account. I will return it. Anyway, in your case, you should probably call them and ask them.

I am not worried about getting a future stimulus check. The proposed new law for a second round explicitly proposed that checks would not go to the deceased. So I doubt that would happen again. The original act did not have that limitation explicitly in it. (Of course, right now there is no active agreement being worked on so it may be a moot point on a future check).

 

[Badger]

Unless you badly need the money it’s not worth it as I’m sure many will agree with. It’s basically a part-time job when you really don’t want one. Throw in the Covid-19 situation and it’s even harder.

Nothing but roadblocks along the way including the IRS. If you have a sibling handle your parents estate consider yourself lucky!

Not always the case. My brother was executor and had POA. He also took money (about $100+K) for distribution to his children, grand children, and a company where he was a board member) NOT listed in the Trust. My sister and I finally got it resolved after a lot of trouble involving a couple of lawyers and expense to us.



Cheers!

 

[socaldonnan]

Don’t forget to get a proof of mailing when you return the check.

 

[audreyh1]

Don't ever offer to be an Executer of an estate! Worse, thankless job ever.

Unfortunately, someone has to do it, and it’s usually one of the children.

Fortunately, DF was still alive when his account received his stimulus check.

 

[Golden sunsets]

My deceased mother received a stimulus check. My accountant told me to expect the check and did not think I should return it so I haven't. If the IRS comes asking, I'll send a check back, but if they don't, I'm not going to do anything about it, as my accountant indicated there was nothing specific in the bill.

 

[Retired Expat]

I thought executors were compensated?

Lawyers and professionals who act as executors get paid, family usually does not, but they should get expenses reimbursed.

I took over managing my fathers assets and as executor from my sisters a couple of years before he died. Save a boatload of money in taxes and expenses while he was still alive and increased the net value of his estate by well in excess of a million bucks. Thankless, not hardly.... My sisters and his other beneficiaries thanked me plenty and I shared in that benefit as well obviously...

 

[Cobra9777]

DMIL got a check for $2400. It was made out to her alone, but obviously included $1200 for my deceased FIL. She asked me what to do. I told her to deposit the check and don't do anything until some law is passed that actually requires the extra $1200 to be returned, including consequences for not doing so. I expect that might happen with the next stimulus bill if Congress can ever get their sh*t together. I've yet to see anything other than an IRS website FAQ that "asks" people to return the money. It's my understanding that there is no clawback provision of any kind in the original CARES Act.