Thanks for your detailed answer! Yes, your assumptions are correct, although my wife is actually the Executor/Trustee for her parents and I'm her husband who does the taxes. We did get a Revocable (Living)Trust established for her parents a couple years prior and all of their funds flowed into this upon the wife's death. The husband died first and then his wife a few months later so I think all of his income and insurance payments went to her first with no income being generated after she died, with the exception of some bank account interest that accrued before all of the remaining funds were distributed out of the Trust account between the designated survivors. I'm not sure if this interest would be enough to require a 1041 but it was probably several hundred dollars. I've always done my own taxes but may reconsider that in this case although your input did clarify some things for me.
