One follow up question. If we pick an example with numbers, say the total estate was $100000 and thus the amount withheld was $10000. To have the estate pay no taxes, we would need to push $100000 to the beneficiaries so they can file. Also, the K-1s would sum to $100000 and provide the deduction on the 1041 needed to zero out the lump sum. But there is only $90000 available to distribute since the IRS has $10000. Does that mean in this case all $100000 can’t be distributed to the beneficiaries? Or does the estate borrow the $10000 so that $100000 is distributed?
