My mother passed, her house sold, and I was executor. I worked with an attorney to close the estate, distribute to beneficiaries, and give tax schedules for the bills that came up while estate was still open. Now she received a settlement check from a class action lawsuit. $50.26 Can this check be deposited into my account (and then distributed to beneficiaries)? Would there be tax implications for the beneficiaries ($10.05 each) or for my mother's estate?
So spouse sent the state the paperwork showing he was the trustee and the state sent him a check. Since the bank account for his dad/my spouse as trustee was long closed, our local credit union allowed him to send the documentation of spouse as trustee, endorse the check from the state, and deposit it in our checking account.
This is not a taxable event, it is inherited property which, if under the current federal estate tax limits (currently over $ 11 million per person,) there's no tax involved. The state considers this a return of a person's property, not a taxable event, so no tax involved.