I'm the executor for my Aunt's estate. I am filing out the Form 1041 and 2 K-1's. She died in July 2015 and did not have a beneficiary named for her IRA. I received a 1099R in the estate's name showing a total lump sum distribution of her IRA. She also had an annuity but the beneficiary predeceased her. The annuity was paid in a lump sum distribution also to her estate in 2015 and I received a 1099R. She left a will that instructs the contents of her estate to be distributed equally between myself and my brother (50/50). My question is, for both the IRA and Annuity amounts that were distributed as income to the estate, does the estate pay the taxes on these amounts or is that income reported to myself and my brother as income required to be distributed currently on our K-1's and we then pay taxes on the income?
