No, not if you decide to claim the income on your return. In this situation a Form 1041 would not be required since it would not meet the filing requirement of $600 or more of income (assumes this is the only income for the estate). However you should take the steps to nominee the 1099-R so the IRS does know where the income should be reported. I added the instructions above and here for your convenience. It's a simple process because you are copying the numbers exactly as they appear on the original 1099-R. The only difference is the payer and the recipient.
Nominee Returns. This is how the IRS knows what you are doing.
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 your sister's estate as the payer and you, as the recipient. On Form 1096, list sister's estate 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.
The forms filed with the IRS should be the red copy (use the form(s) needed) so if you don't have a color printer, go to the IRS website to fill in and print the forms here: :
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