Spouse deaths in same year vs. personal representative

Technical topics regarding tax preparation.
#1
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Northern MI and Coastal SC
I have a scenario I have not encountered and could use input on how a personal representative needs to proceed:

1. My client's son and his wife both passed away in 2022--the DIL died Summer 2022, the son near the end of the year
2. My client was appointed PR by the Court for her son
3. The DIL did not work, but it remains a joint return for 2022 (and potentially 2021, as we do not know if they filed)
4. To my knowledge, since everything passes to the spouse in this state and she had no assets not associated with the son, the son was never appointed as PR for his wife
5. Form 56 will be filed concerning my client acting as PR for her son

My client's lawyer says my client can sign as PR for both despite only having been appointed PR for the son since the son would have otherwise signed the return as surviving spouse had he not died. Pub 559 seems to confirm but it doesn't address this exact scenario where both spouses died in same year. Thoughts?
 

#2
Big E  
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Did either of the spouses have any legal documents prepared such as a living will, trust, or health care proxy or such other
instrument that would provide a clue as to their intentions should an unforeseen event occur?
If your client could find a copy of their last filed tax return, you could obtain the identity of the tax preparer (if they used one) to get some clues.
 

#3
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I agree with the lawyer. I think of the PR as stepping into the decedent's shoes. Besides, it does not appear that there is an alternative.
Steve
 

#4
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No will or any other "end of life" documents exist.

In this state, everything passes to the surviving spouse. The wife's assets never hit probate since they were also all in the name of the husband (he died about 5 months later). With Form 56, my client is taking on the responsibilities of her son for tax compliance. The more I read into it, the more I agree with the lawyer and that it is the ONLY option. The parents of the spouse have not stepped in to handle anything since it all passed to the husband.

So, at this point, I am preparing Forms 56 to close out the 1040(s) and then for the 1041, plus copies of tax returns filed back three years. My client has reason to believe some prior tax returns may not have been filed, or at least not correctly. Then, POA for me to receive copies of correspondence and transcripts.
 


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