The Form 1041 is completed upon the death of an individual when there is more than $600 of income earned on the assets of the estate (SUCH AS INTEREST, DIVIDENDS, AND RENTAL INCOME). The executor or personal representative files this return and in most cases the final return of the decedent. In most cases, filing a Form 1041 generates a tax liability that the beneficiaries of the estate report on their persomal returns, and pay the tax based on their portion of the distributions from the trust. Payment of taxes is based upon the type of trust involved. If you are not familiar with the various trusts and their taxation, we can help.