Which form does an estate need to file in the event of income being received after the beneficiary's death?

An estate is required to file Form 1041, U.S. Income Tax Return for Estates and Trusts, when it receives income after the beneficiary's death. This form is used to report the income generated by the estate, such as dividends, interest, or rental income, and to calculate the estate's tax obligation.

When a beneficiary passes away, the income that continues to accrue must be reported through the estate, as it is considered part of the estate's taxable income. The estate itself is treated as a separate taxable entity, and any income received during the period of administration must be filed on Form 1041.

The other forms mentioned are designed for different purposes. Form 1040 is the individual income tax return for personal tax liabilities, Form 1120 is used for corporate income tax returns, and Form 706 is the estate tax return that deals with the calculation of the estate tax owed based on the value of the estate at death, not the income generated thereafter. Therefore, for income received after a beneficiary's death, Form 1041 is clearly the appropriate choice.