All income your aunt would have received had death not occurred, that wasn't properly includible on the final return, discussed earlier, is treated as “income in respect of a decedent”.
Refer to IRS Publication 559 at this link for instructions on how to report this income. These instructions include this:
Income in respect of a decedent must be included in the income of one of the following.
- The decedent's estate, if the estate receives it.
- The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.
- Any person to whom the estate properly distributes the right to receive it.
You may also be interested in this IRS website for filing a decedent tax return.
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