Are payments that are suspended during probate considered "income" in a Form 1041

[Rates Payer]

The payments of Mom's royalty income ($450) were suspended in 2025 upon her death during probate of the estate. They were paid to me as her only heir in 2026 after the rights were transferred to me.  

Do the payments suspended during probate need to be reported as income on the estate's 2025 Form 1041?  

[DianeW777]

No. They payments were paid directly to you as the beneficiary in 2025 and were not income received by your Mom. The royalty payment(s) should be reported on your tax return. You can use the information below to enter your royalty payments. Select to report them on Schedule E.

• How do I enter a 1099-MISC for royalty income?
• US Code Section 613-Percentage Depletion

Depending on the type of royalty, you may be entitled to a depletion allowance. Commonly 15% of gross income for oil/gas, often simpler, but not allowed for timber. TurboTax will calculate this automatically depending on the type of royalty you select.

[Rates Payer]

Thank you but one correction: I received the royalties in 2026  (not 2025). So I don't think I declare them as my income until 2026 return. Am I right?

[CatinaT1]

Yes, you would report it in the year it is received. 

[Rates Payer]

Thank you!