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Q. What happens to the Stimulus check of my loved one if they pass away prior to the check being received?

  • If you are married?
  • If the check was for your parent?
  • If the check was for your child?

A. The stimulus payment was issued based on an individual’s 2018 or 2019 Income Tax Returns. This has resulted in payment to individuals who passed away after the return(s) were filed. It was initially thought that the government planned to allow heirs and spouses to keep the check. There have been no specific guidelines issued and the CARES Act, (Coronavirus Aid, Relief, and Economic Stimulus), does not have a “clawback ” provision, which would give the IRS the power to take back the money. Therefore, for now it is unknown how this will be handled, we are awaiting guidance from the government. Although, the Treasury Secretary of State, Steven Mnuchin, has made statements indicating that he would want the relatives and estate to return the money.

It should be noted that, the Cares Act specifically excludes Estates and Trusts from the stimulus payments.