This month a number of our prior clients, who are now deceased, received stimulus checks from the IRS. Apparently, the IRS used data from 2018. The guidance on what to do with the checks is lacking and some people are being told to just keep the checks because the IRS has said that “people who received more money than they were due because of changes in income wouldn't have to return the money.” That doesn’t exactly fit the situation when a person has died.

One problem that receipt of these checks creates is that either there must be an open estate in which to deposit the checks or an estate needs to be opened. Often, opening and closing a probate estate can cost more than the actual stimulus check itself. Moreover, without an open estate and either an executor or administrator appointed by the court, no one has the legal authority to accept the check on behalf of the decedent.

A “run around” that I have heard some family members doing is depositing the checks into a joint account that continues to have the decedent’s name on it as joint owner. Also, automatic deposits are being made into accounts that were on file with the IRS.

The IRS is now saying that they do expect the checks to be returned. In fact, they have inquired with the Department of the Treasury about if legal action will be taken against those that do not return the checks. Although that answer has not been provided, I would not want to be the one who didn’t return the check to then find the answer was against me.

I am advising our clients to return the checks to the IRS using a mail delivery system with tracking, after making a copy of it for their own records.