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Yes, the actions you describe can be taken and the information is explained below.

QUESTION #1:

What's the proper way to address this since the amounts need to be divided amongst the 2 returns?

• If the Forms 1099-DIV do not represent the amount that should be reportable on each separate return then you can enter the appropriate amount on each return.  If they are actually duplicated and double the income then you will pay tax on only the actual dividends earned during the year.  Keep your records should you need to prove actual dividends earned for the entire year (statements showing the dividends for the year).
  1. The final return of the decedent should show dividend income earned up to the date of death.
  2. The estate tax return would report the dividends earned from the date of death to the end of the year.

You can file the Form 1099-DIV and Form 1096 only to distribute the actual dividend that should be reported to the other party. This is called a nominee action. 

Once you confirm the total dividends earned for the year use that figure only.  If the full amount is reported on the form using the SSN of the decedent  figure out what is required to be reported on the final return, then nominee the difference to the EIN. 

You cannot correct any mistake by the financial agent who issued the 1099s, only the actual income to report on each return.

I suggest taking the same action for the Form 1099-B.

Nominee returns. 

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list decedent as the payer and the other owner, as the recipient. On Form 1096, list decedent as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.