Items of income in respect of decedent require careful planning attention after death. As property that does not receive a new income tax basis at death, the pre-death basis (possibly zero) carries over with the gain taxable to the estate, the heirs or beneficiary. The income recognition event can lead to substantial income tax liability.
"When Income In Respect of Decedent is Recognized,"
Agricultural Law Digest: Vol. 6
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol6/iss17/1