In this situation, you would not file nominee 1099-INTs- your mother is not the nominee recipient because she passed away, so although you could file on her behalf as personal representative, I am not sure if the IRS efile system would accept the filing (because her social security number would be designated deceased). Your follow up questions on filing the nominee 1099-INTs are null because of this.
You are correct that this is Income in Respect to a Decedent and this is the path you will want to follow. The IRS says:
Income in respect of a decedent must be included in the income of one of the following.
- The decedent's estate, if the estate receives it.
- The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.
- Any person to whom the estate properly distributes the right to receive it.
Income in Respect of a Decedent
If the income was already distributed, the beneficiary will need to report the income and pay tax on it. It is possible to claim a deduction for the taxes paid on this. You should contact the beneficiaries of this.
You would not include the income on the trust return, as it is separate.
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