[WSBAPT] PR's powers after closing estate re IRS

[Philip N. Jones]

Unlikely.  It all depends on how loose the financial institution (his or her bank) is.  In theory, they should not allow it.  But a friendly teller might let it go, particularly if they know the client well.  But the PR is no longer the PR.  I have not tried putting that power in the general judgment or in the supplemental judgment.  Not sure how judges would react to that.

With regard to tax returns:  In an estate, the personal representative has usually been discharged by the time the final fiduciary returns are prepared and are ready to be signed and filed.  And a trustee, who no longer holds any assets, is technically no longer serving as trustee.  Can these former fiduciaries nevertheless sign the final income tax returns?  In Oregon, there is no legal authority directly on point, but most attorneys believe that such fiduciaries do have the authority, and the obligation, to sign and file the final returns.  (In Washington, RCW 11.68.114 provides that a personal representative of a closed probate retains the authority to deal with taxing authorities, and may retain a reserve of up to $3,000.)  Reg. §1.641(b)-2(a) is clear that the obligation continues after the discharge:



The fiduciary is required to make and file the return and pay the tax on the taxable income of an estate or of a trust.  Liability for the payment of the tax on the taxable income of an estate attaches to the person of the executor or administrator up to and after his discharge if, prior to distribution and discharge, he had notice of his tax obligations or failed to exercise due diligence in ascertaining whether or not such obligations existed. (Emphasis added.)





Phil Jones




Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 – office
(503) 853-1482 – cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Marvin Benson
Sent: Friday, May 28, 2021 2:25 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] PR's powers after closing estate re IRS

LIstmates

When closing probate estates, I have been using standard language giving the PR power to prepare tax returns and pay taxes.  Does that, or can that include cashing or depositing tax refund checks?

Thanks

Marvin Benson
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