I received a Stimulus Check for a loved one who had passed away. What should I do with it?
Updated: Jul 26, 2020
In response to the economic downturn and the effects COVID-19 has had on businesses and employment nationwide, the federal government instituted the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide citizens with emergency financial assistance to continue to pay for housing, food, and other essential needs.
Recently, reports have come out from citizens across the United States that they have received stimulus checks made out to their deceased loved ones. If you serve(d) as Personal Representative for that person’s Estate, your first inclination may be just to deposit the monies into the Estate account for future disbursement. However, the IRS came out and specifically advised against that.
On the IRS website (https://www.irs.gov/coronavirus/economic-impact-payment-information-center#more), it states that "[a] Payment made to someone who died before receipt of the Payment should be returned to the IRS…”
If you are administering a Maryland Estate or need help starting one, contact an experienced professional at Spencer & Stahl, P.C. at (410) 203-2223 to discuss your options and gain guidance on how to best proceed with your potential matter.
Posted written by Travis Hise