In June 2016, Cynthia died. She lived with her sister Roxanne until the time of

ID: 2599459 • Letter: I

Question

In June 2016, Cynthia died. She lived with her sister Roxanne until the time of her death. Her only asset was the home she owned jointly with Roxanne with right of survivorship. It was worth $7 million at death. Cynthia left no will and Roxanne did not apply to the court to be named administrator. Assuming that Cynthia 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) Roxanne must file the estate tax return because she is in possession of Cynthia’s asset and, for tax purposes, is therefore considered to be her personal representative. (3) no estate tax return need be filed because Cynthia‘s estate is under the filing threshold. (4) Roxanne must appoint an executor over the estate to file Cynthia’s return. In June 2016, Cynthia died. She lived with her sister Roxanne until the time of her death. Her only asset was the home she owned jointly with Roxanne with right of survivorship. It was worth $7 million at death. Cynthia left no will and Roxanne did not apply to the court to be named administrator. Assuming that Cynthia 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) Roxanne must file the estate tax return because she is in possession of Cynthia’s asset and, for tax purposes, is therefore considered to be her personal representative. (3) no estate tax return need be filed because Cynthia‘s estate is under the filing threshold. (4) Roxanne must appoint an executor over the estate to file Cynthia’s return. (1) no estate return need be filed because there is no one named by the court to file it. (2) Roxanne must file the estate tax return because she is in possession of Cynthia’s asset and, for tax purposes, is therefore considered to be her personal representative. (3) no estate tax return need be filed because Cynthia‘s estate is under the filing threshold. (4) Roxanne must appoint an executor over the estate to file Cynthia’s return.

Explanation / Answer

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

Facts of the case:

Cynthia purchase home with her own funds.

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

Her only asset was the home she owned jointly with Roxanne 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.

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In June 2016, Cynthia died. She lived with her sister Roxanne until the time of

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