Ah, but the bulk of each beneficiary's distribution consists of inheritance (basis?), which is not taxable. What is taxable is the income generated by the estate after the date of death. I plan to pay the taxes on this income, then distribute the remainder to the beneficiaries. I understand that I will be paying higher taxes this way, because the estate rate is higher, but that's how everyone wants it. This way, I will not have to deal with K-1's. Is this OK?
