Any tax advantage to retitling MF from Estate to heir?

[AZ-Tax]

Is there any tax advantage for an Estate to sell its MF (Mutual Fund) by PR requesting the MF to reregister the MF in one of the heirs name for which all other heirs agreed to?

[Burke]

Is this contrary to the will? Is there a significant capital gain since the date of death? The estate can distribute the mutual fund to one of the heirs, and have the others disclaim their right to it by notarized document, if necessary. This would have to be approved by the locality who oversees estates. ( I am referring to cases where an accounting is rendered and filed at the courthouse.) Then he/she can sell it herself.

Your post is a little confusing as you speak of "selling" the mutual fund, and then you speak of "re-registering" it in one of the beneficiary's name. If it is distributed to anyone (or re-registered, to use that term, which is the same thing), that is not a sale and is not taxable income to the estate. It is a distribution and it is part of DNI, which can be a deduction. The brokerage or custodian simply transfers the existing account to the new party. Whether there is a tax advantage for the estate to sell it and distribute the cash cannot be determined without all information as to taxable income and deductions for the estate compared to the individual's tax situation.