1099-R and Estate 1041

[TRC84]

My mother passed away in July 2024 with a small estate consisting of assets held in joint accounts, qualified annuities, a trust account (residence was in trust) and an individual account holding 41 shares of stock. 

***All the qualified annuities were paid out to the beneficiaries directly and each beneficiary received the corresponding 1099-R. 

***The joint accounts passed to the surviving owner upon death.

***The 41 shares of stock were sold in December.  The company paid $45 of dividends since the date of death and the gain realized based on DOD basis was $360.

***There were no disbursements made in 2024 to the beneficiaries of trust

As successor trustee is a 1041 required?  I believe since taxable income is below $600 it is not, but I am cautious because of the annuities possibly causing IRD.

[DianeW777]

It depends. Based on the information above, it would seem a Form 1041 is may be required since the filing requirement is $600 of taxable income. If the gross proceeds were greater than $600, when adding the dividends, then a return is required to show the cost basis. If this is the case, all income from dividends, and stock sales would require you to file Form 1041, for the estate.