Tax question about 1041 filing for decedent with with an asbestos lawsuit?

Help MOB....how do I file a 1041 for a benefeciary that has set up an estate trust and has an income from a lawsuit?

I believe that those funds will be exempt from taxes because they belong to someone that has died; however, I am having trouble locating the exact forms I may need to submit for this strange filing.

Yes it was for damages....thanks i knew that it was exempt; however, i am trying to find the form that I can submit that ask for the EIN.... set up some time ago upon the death.

I'm not sure if I'm understanding your question right. It sounds like there was a trust set up before his death, correct? So the trust has been filing Form 1041 for any income that it has produced, Interest, dividends, etc. since his death. Correct? Whoever is the trustee of that trust is the one who has been doing that ,right? What type of trust was it? A living trust or a decendent trust? This really is a complicated matter that cannot be answered easily on a general forum. The money earned from the trust must be disbursed annully, totally to descendents or the trust will end up paying 35% income tax on it if it stays in the trust. This is the type of situations that can get very complicated depending on whose EIN you are using on the 1041. The deseased or the desencendents. Are you the trustee of the trust? There are many different types of trusts. Bottom line, you need the professional help of a CPA with the trust. They really can be very complicated and if not done properly can cost thousand of unneccessary taxes paid.
In my honest opinion, that is what you should do. It's just to complicated to answer here in a general tax forum online.

You may want to contact the nearest H&R Block Office to see if they have someone who specializes in taxes for estate trusts. They are senior tax pros who keep working thru the off-tax-season and deal with the sorts of problems.

1-800-HR-BLOCK or www.hrblock.com

The money in the lawsuit is either taxable or not based on what the money is for, the fact that it's payable to a decedent does not make it non-taxable.

If the money is for death/personal injury, it's not taxable. Any further income such as interest *is* taxable on the 1041. Did the estate receive any 1099s?

You use an SS-4 form to get an EIN to use to report any estate income. The EIN is given to the trustee.

Any money for compensatory damages or punative damages will be taxable, and that includes the legal fees as these generally trigger AMT.

Don't go to Block. This is not a simple return issue. This is a heavy duty issue that calls for professional attention from an enrolled agent, CPA or attorney knowledgeable about this kind of thing.