@thisblows
Find a reputable EA, CPA, or qualified tax professional in your area.
My opinion (and I have been there and dealt with this sceanrio previously) is that the best approach is to file a 1041 and let the estate pay any tax due for the year in question (2023, presumably).
You should note, and inform your tax professional, that the estate was in probate for an extended length of time and that costs were incurred and NOTE that ALL of those costs are deductible on the 1041.
Note also, that the estate might incur a late filing penalty plus interest BUT those charges plus the tax due could be totally, or in large part, offset by the estate's $600 exemption and the deduction for probate costs (plus any other related deductions).
Finally, note that in order for the dividends to be IRD, and taxable to whoever received them, they would have had to have been includible in the decedent's final return. If the dividends were received (not just the tax reporting form) after the decedent passed, then that income would be includible in the estate's income and potentially reportable on Form 1041.
