[header] How to determine if an estate must file an income tax return [title] Understand the income tax liability of an estate. [step] When the decedent passes away and their assets are made part of their estate, those assets do not simply stop generating income. A lot of assets will continue to generate income as if the decedent were still alive. 
When income is generated by an asset in an estate, that income is taxed the same way as income would be taxed for an individual. [substeps] For example, if the decedent owned stock, that stock might become a part of their estate.