Would there be a tax liability upon that final report 1041?
If the estate had been taking depreciation deductions which reduce basis and sold for more than the adjusted basis then either the trust would pay any tax due or pass the gain along to the benes.
Of course every year the estate has income from the rental you need to file a 1041 and the estate needs to pay any tax due on the net rental income or the benes do. If you are really unsure of the process you should definitely seek professional help with this.....sure beats getting sued by the benes if you mess up trying to do it yourself.
