Question

In July 2017, Olivia died. She lived with her sister Gretchen until the time of her death. Her only asset was the home she owned jointly with Gretchen, with right of survivorship. It was worth $8 million at death. Olivia left no will, and Gretchen did not apply to the court to be named administrator. Assuming that Olivia purchased the home with her own funds, which statement is correct?

1. No estate return need be filed because there is no one named by the court to file it.

2.Gretchen must file the estate tax return, because she is in possession of Olivia’s asset and, for tax purposes, is therefore considered to be her personal representative.

3.No estate tax return needs to be filed because Olivia’s estate is under the filing threshold.

4.Gretchen must appoint an executor over the estate to file Olivia's return.

Which statement is correct?

Answer 1

Ans) Gretchen must file the estate tax return because she is in possession of Olivia’s assets and, for tax purposes, is therefore considered to be her personal representative.

Facts of the case:

Olivia purchase home with her own funds.

She lived with her sister Gretchen until the time of death.

Her only asset was the home she owned jointly with Gretchen with right of survivorship.

As per law legal representative of estate is responsible for filing all returns.

Legal representative is the closest relative of a deceased.