Taxable Death Benefit from Pension

[TheTaxMan]

My client is the executor of an estate for a woman who passed away early in 2007.

The pension system of the deceased paid (in the name of the deceased) a $3,000 death benefit.

The 1099-R on the death beneift shows the distribution as being fully taxable with type of distribution being based on death in Box 7.

It has has the deceased's social security number and name as the recipient of the distribution.

Does this distribution need to be picked-up as income in the last return of the decedent or the initial income tax return of the estate?

Thank you in advance.

[Bees Knees]

All pension benefits paid after death are income in respect of decedent (IRD).
IRD paid to the estate goes on the 1041. IRD paid directly to a beneficiary goes on the beneficiary's 1040.