Estate - Charitable Deduction

[NSNM]

A person died survived by his wife.
Prior to his death, in his will, he indicated to pay $5000 to a Charity (NY Medical Library).
There were not any substantial income generating assets left by the deceased.
He did leave enough cash and bonds to pay for the charity.

In the 2nd and final year of the Estate's Fiduciary Return (Form 1041), it had the following items:

Interest Income ........ $3
Dividend Income ....... $74
Business Income (cash received from a client for professional services rendered in prior years) ..... $888

Total Income ...... $965

Professional fee paid ......$800
Payment to charity pursuant to his will......$5000

Adjusted total income (loss) .....($4835)

Taxable income (loss) .... ($4835)

If I deduct charitable contribution, beneficiary's K-1 show no entries on any line.

Is it proper to show charity deduction on Form 1041, if it is paid out of the cash assets of the deceased,
and NOT from the gross income of the estate.

Thanks for any responses.

[Jiggers]

The payment to the charity was through the terms of the will. There is no deduction for this on the 1041.

[Bees Knees]

The payment to the charity was through the terms of the will. There is no deduction for this on the 1041.

To clarify, if the terms of the will say to contribute $5,000 out of gross income to charity, then it is a deduction on the 1041. If the contribution is not made from gross income, it is not deductible on the 1041 (TTB, page 21-15).

However, if charitable deductions exceed income and it is the final year of the estate, the excees charitable deductions cannot be passed through to the beneficiaries on the Final K-1 (TTB page 21-14).