Estate return (1041) question

[drjulian]

My mother passed away in 2021 and left a small estate which included a few stocks, a home and some cash. I have sold the stocks and the home and combined it with the cash which has been distributed to the beneficiaries all in 2021. The estate was then closed. This all went without issue. I am now getting ready to prepare the 1041 for the IRS. I have no problem filling the form regarding the stock sale and the home sale.

Here are my questions: 1) Is there anywhere on the 1041 where I enter the cash that was moved to the estate from my mother’s savings account? I realize this is not income but I want to make sure there is nowhere that cash must be entered. 2) The K1s for each beneficiary shows their share of the income generated by the estate before it was closed. (It was a small amount of interest and an slight increase in the stock value from the date of her death until they were sold) All of the beneficiaries are sons or daughters of the deceased so there is no tax on the inheritance. That being said, are there any forms other than the K1, that must be issued to the beneficiaries?

[Critter-3 · Accepted solution]

1) Is there anywhere on the 1041 where I enter the cash that was moved to the estate from my mother’s savings account? I realize this is not income but I want to make sure there is nowhere that cash must be entered.  Cash is NOT income so it is not entered anywhere on the 1041. 

2) The K1s for each beneficiary shows their share of the income generated by the estate before it was closed. (It was a small amount of interest and an slight increase in the stock value from the date of her death until they were sold) All of the beneficiaries are sons or daughters of the deceased so there is no tax on the inheritance. That being said, are there any forms other than the K1, that must be issued to the beneficiaries?   Only the K-1 is needed.  

[drjulian]

Thank you