RS 01802.100 Beneficiary of Estate or Trust
A. OPERATING POLICY — GENERAL
The income of a beneficiary from an estate or trust operating a trade or business is excluded because the:
Estate or trust, not the beneficiary, is engaged in the activity, and;
Beneficiary is not the operator of the trade or business.
If the deceased was a partner in a business, and a question arises as to whether the administrator or executor of the estate has jurisdiction over the entire trade or business or only a part of it, seek advice from the ARC, Programs.
B. OPERATING POLICY — ADMINISTERED BY BENEFICIARY
Even though the administrator is also a beneficiary of the estate, the estate rather than the individual is carrying on the business which belongs to the estate. Until there has been a complete distribution of the assets of the estate, the earnings of the business are not NESE attributable to the administrator-beneficiary.
C. OPERATING PROCEDURE
Assume the NE from the business do not belong to the beneficiary unless;
If so, develop; the facts and make a determination. See RS 01802.034.
D. OPERATING POLICY — NO ADMINISTRATION
If a business is operated by a beneficiary after the death of the owner, the earnings are the NESE of the beneficiary.