Estate tax when no estate opened?

[akmccarthy]

My mother recently passed. No estate was opened, and there is no executor/PR. Only the small estate affidavit was used in South Carolina for successor to claim a small amount of checks totaling $620 (EIN not needed). If the credit card company who discharges/writes-off the debt issues a 1099-C, how should that be handled since there is no estate and no executor? 

[tagteam]

See Solved: 1099C for deceased. Final return filed. No money in estate. What do I do?

[akmccarthy]

I've read through the information and I've seen two things: One is to say the 1099c debt cancellation is income included on a return of a beneficiary (when it's not really income) and form 5495 should be filed, and another response says to do the 1041 and 982 for the estate since it's income to the estate (even if no formal estate was opened). Which is correct? If it's all about the estate, I understand this to mean that even though no estate was opened (insolvent), if a credit card company discharges her debt and sends a 1099-C, I'll need to get an EIN (even though we did not formally open an estate) and file a 1041 and 982 along with a cover letter and the 1099-c form. I am in a similar boat as the January 26, 2022 poster saying any estate funds went to partially reimburse me for funeral expenses, and there were no other funds for any other debts, and therefore insolvent.  Which way is the correct path?

[tagteam]

I should have specified that the answer to follow is marked as the "Best Answer"