A 1065 partner died in 2020 with a large passive loss carryforward.  If I check final on the K-1, the passive loss frees up but creates a large NOL.  Is this correct?  The partnership has not distributed out to the estate in 2020 so the final K-1 will actually be in 2021, but I am looking ahead.  Is there a place to step up the basis for the deceased partner's estate (new tax id in 2020) and if so, is the basis adjustment done in the 1065 module or the 1041? 

Prior to death, partnership interest was reported on the partner's 1040 under their ssn.  Now there is a tax ID for the estate. Should 2020 be reported under the SSN or the trust id?  

Another piece of this - the other partner is a relative who inherits the assets.  Going forward it will be a SMLLC.

Thank you