How do I file residual income for my daughter's estate?

Q: In 2002 I became administrator of my daughter's estate. For her 2002 taxes I filed in New York (rightly or wrongly) where she had lived. I am still receiving her residual checks, which I give to her brothers. Am I obligated to file a 2003 tax return in her name or can/should I just add her w2s to my tax return? Do I have a choice and if so, which would be better? - Carol, Newton

The following answer was provided by Wesley Rickard, CPA, Quin, Rickard, Lipshires, & Grupp LLP, Norwood.

A: Your question leaves a lot of open items to give an accurate answer. You state your daughter is still getting w-2s. I don't know under what circumstances or how this could be still happening. So I will give you some general advice. Once an individual dies his or her personal tax filing ends at date of death. Pre death income is reported on the decedents final form 1040 and post death income is either reported on an estate fiduciary income tax return (form 1041) or on the income tax return of the beneficiary entitled to receive the income. You certainly don't want to and cannot add her income to your own. Since I don't accurately know what is happening it does appear as if you are not reporting this correctly. Please seek some advice.

The following answer was provided by Barry Beck, CPA, Barry D Beck, CPA, PFS, DABFA, Bedford.

A: First of all, I'm sorry for your loss. The brief statement of your facts, indicates to me that major problems may develop. I would recommend that you seek professional help. There may be a need for help from both a CPA and attorney.