TP father died, how to handle money sill owed to him from a business he sold

[yeknod]

TP father died in 2024 and was still owed monthly payments from a business he sold a few years ago.  The payments will still go on for 4 more years.

The new owner is willing to make the payments to his daughter.  What is the best way to handle the income?  Should she just open an account and put the $ in there or should a Trust be set up?

Thoughts?

Thanks in Advance!

[sjrcpa]

It's estate income (Form 1041) until the payment obligation is transferred to the beneficary(ies).

[yeknod]

how do you transfer it to the beneficiary?  The company paying it is willing to pay it to the beneficiary.

[sjrcpa]

The note is a legal document. It is part of the estate. The probate attorney should draw up the paperwork to have the note payable to the beneficiary.