Assume we have a rather large estate with four equal beneficiaries.The assets are varied, including real estate, investment real estate, stocks, bonds, savings accounts, art collections, etc. It many take more than a year to liquidate the estate and distribute the proceeds.While administering the estate it is earning income from properties and investments as well as incurring expenses.Let's discuss the filing of Form 1041, the distribution of the earnings and the potential tax issues.