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.
[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.