What is Income in respect of a decedent?
In short
Income in respect of a decedent is income the decedent earned or was entitled to but hadn't received before death, such as a final paycheck, retirement account balances or remaining installment sale payments.
Key takeaways
- It is taxed to whoever receives it, with the same character it would have had for the decedent.
- It gets no step-up in basis.
- The recipient can deduct the estate tax attributable to it.
Where it's tested
REG: Trusts, Estates & Gift Tax Basics — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under the One Big Beautiful Bill Act, what is the lifetime estate and gift tax exemption per individual beginning in 2026, and is it scheduled to sunset?