Cares Act check cunnumdrum

[911/914gary]

Looking to the community brain trust’s opinion. My wife and I do not qualify for Cares Act checks due to our incomes. However, we both got checks to our deceased parents. They would both qualify if living. My wife’s father passed away prior to 2018 tax filing date. As executor for his estate she filed 2018 taxes for him as deceased. The Cares Act check we received is pay to the order of his name, and flagged “DECD”, plus her name. Does this mean since she is executor of the trust can the check be cashed by her?

On the same token my mother passed away. But she passed shortly after the 2018 filing date. So the IRS doesn’t flag her as deceased yet. So her check is pay to order to only her name. This is probably a stretch, but if the above case is acceptable, could this check be cashed by me since I am the executor of my mother's estate?

I know any answer is not official. But I just wanted to hear other thoughts on this.

[KFC911]

I would destroy the checks... but that's just me and how I roll.

[Alan A]

Checks are supposed to be for people affected by this whole mess.
They used the 2018 filing as the income test.

I'd find it difficult to argue that your already dead parents were affected by covid were anyone to find out you cashed the checks, so I'm not sure that's exactly the position you want to be in.

Especially since you already told us you aren't going to be able to plead poverty...

[911/914gary]

I can understand my mother's case I will return the check. However my father in law's check is made out to him (marked DECD for deceased) and to my wife's name. A case could be argued that the check helps with the deceased financial issues to the estate.

[MBAtarga]

Originally Posted by 911/914gary

An illogical and nonsensical case could be argued that the check helps with the deceased financial issues to the estate.

Sorry - but as others have said, unless either of them was alive and therefore directly impacted by COVID-19, you have no legal right to those funds.

Edited since my original post was taken to mean they had to be impacted by COVID... I added "therefore" to remove any doubt that yes - if they were alive - they would have been impacted...

[fintstone]

There were lots of mistakes. Some folks were sent millions. If you spend it and they catch you...you will likely be held accountable (just like the guy that got $6M deposited in his account). It will be pretty hard to make the case that a stimulus check was intended for a deceased person.

[red-beard]

The checks are an advance on 2020 tax refunds. If the estate will not have a 2020 refund coming, then the checks should not be cashed. That would be defrauding the Federal Treasury.

[Crowbob]

Originally Posted by MBAtarga

Sorry - but as others have said, unless either of them was alive and directly impacted by COVID-19, you have no legal right to those funds.

Waitaminit.

Who says there was a requirement to have been directly impacted by the Chinese virus? Millions of people are retired whose incomes remained unmolested by the lockdowns and they did not have the virus. Are they not legally entitled to those checks? And what about the even more millions whose checks were direct-deposited? Are they supposed to write out a check back to the government?

[island911]

Sorry for your loss.

You could try looking here. https://search.treasury.gov/search?affiliate=treas&query=DECD

Personally, seems like it's inviting hassle. But check.

[sammyg2]

Originally Posted by 911/914gary

Looking to the community brain trust’s opinion. My wife and I do not qualify for Cares Act checks due to our incomes. However, we both got checks to our deceased parents. They would both qualify if living. My wife’s father passed away prior to 2018 tax filing date. As executor for his estate she filed 2018 taxes for him as deceased. The Cares Act check we received is pay to the order of his name, and flagged “DECD”, plus her name. Does this mean since she is executor of the trust can the check be cashed by her?

On the same token my mother passed away. But she passed shortly after the 2018 filing date. So the IRS doesn’t flag her as deceased yet. So her check is pay to order to only her name. This is probably a stretch, but if the above case is acceptable, could this check be cashed by me since I am the executor of my mother's estate?

I know any answer is not official. But I just wanted to hear other thoughts on this.

Do the right thing because it's the right thing to do.
Plus you really don't want to go to jail.

[911/914gary]

I can't argue with any points made. And I'm definitely not the type that would do anything illegal. I don't need the money so I'll just return the checks. Thanks all.

[sammyg2]

Good for you, your karma stock just went up a bunch.

[Baz]

Cash and give the money to your local animal humane shelter....

[jyl]

This was news about a month ago. The CARES Act did not have any language saying that deceased persons were not to receive checks, or that those persons’ estates were required to return checks received. The government pays money to the estates of deceased persons all the time, its not unprecedented. The IRS then issued guidance that such checks were to be returned. It may not have the legal authority to do so. But realistically no one is going to fight the IRS over $1200. I’d return the checks too.

[wdfifteen]

Do the estates still have bank accounts? I was advised to keep my parents estate accounts open for at least one year - two years would have been better. If the accounts exist, deposit the checks in the accounts. Be ready to send it back if the irs comes knocking in a few years.

[KFC911]

Just curious as to why bother sending it back... I would just destroy them.

[onewhippedpuppy]

Originally Posted by Crowbob

Waitaminit.

Who says there was a requirement to have been directly impacted by the Chinese virus? Millions of people are retired whose incomes remained unmolested by the lockdowns and they did not have the virus. Are they not legally entitled to those checks? And what about the even more millions whose checks were direct-deposited? Are they supposed to write out a check back to the government?

A retired person who watched their retirement accounts decrease by close to 1/2 was pretty seriously impacted by this. A person who has died 1-2 years ago, not so much.

[Norm K]

Originally Posted by 911/914gary

I can't argue with any points made. And I'm definitely not the type that would do anything illegal.

And yet you asked a bunch of internet strangers for advice. This never should have been a conundrum.

_

[KFC911]

Originally Posted by red-beard

The checks are an advance on 2020 tax refunds. If the estate will not have a 2020 refund coming, then the checks should not be cashed. That would be defrauding the Federal Treasury.

Nope....they are give aways....not related to 2020 or refunds, etc.

But I'm spending Sammy's tax $.... just because

[greglepore]

Matt, if you're retirement account decreased by 50%, you need a new advisor.
I live on retirement income. My accounts dropped maybe 15% or so. It was still a big number and stung. But I only count on 5% or so annual returns in my planning, and the last few years have been way above that, so on a 10 year average I'm still on target.

That said, I'm of the belief that the real economic impact of this is yet to come.