My client's estate received a 1099-R for an IRA distribution. I spoke with the executrix regarding the form, and she confirmed that the estate was the beneficiary of the IRA (no individuals designated). She informed me that the custodian created an inherited IRA for the estate, then distributed checks to the beneficiaries of under the deceased's will from that IRA.

Given this process, my understanding is that I will of course need to report the 1099-R taxable amounts on line 8 1041 and flow through to the beneficiary K-1's on line 5. Does this sound correct? Given the way the amounts were distributed, would the beneficiaries have to be taxed on these amounts?