If the assets have not been transferred the heirs then the Estate 1041 would report the income on the assets.
For the life insurance policy, as long as it is life insurance and not an annuity, then only the interest income if any is reported as income.
The mutual funds if not transferred to grandkids then dividends, capital gains, and interest would be reported on the 1041 return.
I would suggest also talking with the Atty handling the Estate as many of them also prepare the 1041.
If you are doing the 1041, you will need to use TurboTax Business software to do the preparation. https://turbotax.intuit.com/small-business-taxes/
