Thanks for your response, but I'm still unclear about the situation.
(1) Am I correct in assuming I should I report the payment on estate's 1041 return and NOT on uncle's 1040?
(2) Does this mean the payment will NOT be included in uncle's SSA-1099?
(3) If the payment does appear on uncle's SSA-1099, do I need to subtract the payment on his 1040 return, and then include an explanation that the amount was added to 1041?
