Thank you very much Ira, you have been a great help.

Gabe
Alps Group

IraS1@aol.com wrote:
> >>Our club has lost one of it's members and this is the first
> time we have conme across this situation.  I'm assuming his
> wife becomes the beneficiary but how do we handle end of
> year taxes?  Do we transfer everything under her name if she
> plans on staying with us?  Any suggestions would be of great
> help.
>
>
> DON'T ASSUME ANYTHING!! First, check your partnership agreement. Most are written so that the death of a member is treated as a request for a full withdrawal. If you process the withdrawal, make all transfers payable to "the Estate of [name]". DO NOT PAY THE SURVIVING SPOUSE as you do not know that she is the beneficiary. If you are contacted by the Executor of the Estate and are presented with official documents establishing the Executor's authority, then you can follow the Executor's instructions, but the safest procedure is to pay off to the Estate. If the surviving spouse wants to continue, she can buy back into the club at the current unit value. Transfering the units directly to the surviving spouse is not recommended because the software cannot track the adjusted basis of the units due to step up in value at date of death.
>  
> If you process the full withdrawal, the taxes will take care of themselves. You will issue a withdrawal report and an end-of-year K-1 in the name of the deceased.
>  
> Ira Smilovitz