This distribution is not reportable at all on your father's final individual estate tax return. Upon your father's death, since the estate was the beneficiary, completing your father's 2017 RMD became the responsibility of your father's estate. Therefore, on your father's final individual tax return indicate that he received all of the RMD for 2017.
The distribution to your father's estate is reportable on your father's estate income tax return, Form 1041, for the estate's taxable year. This income should have been reported on a 2017 Form 1099-R issued in the name and EIN of your father's estate. Since the distribution to the estate occurred in the same year as your father's death, the distribution satisfies your father's RMD for 2017 and the estate has no need to file form 5329 Part IX.
This income to your fathers estate can be passed through to estate beneficiaries on Schedules K-1 as Distributable Net Income. DNI passed through in this manner is a deduction on the estate's tax return and is taxable income to the estate beneficiaries.
