Hi, Kupchik.
An estate with $6K of dividend income in a year is large enough to benefit from professional help, in many cases. As I said, "some very complicated questions are buried just beneath the surface of what appear to be very simple situations." The "tax-free interest" might also indicate some complications. (Page 28 of the 52-page official instructions for Form 1041 says, "If the estate or trust received tax-exempt income, figure the allocation of expenses between tax-exempt and taxable income on a separate sheet and attach it to the return.") The mechanical preparation of the return is the easy part. But there are some important decisions that need to be made, and those require some understanding of probate accounting and tax rules.
For example, I was able to save significant taxes for several estates and their beneficiaries simply by careful selection of the fiscal year-end for the estate. Often, ending the estate's year just before final distribution saves the heirs by letting the estate pay tax at low rates on the income while passing through final-year deductions (and already-taxed income) to the heirs, who may be able to benefit from those deductions at high tax rates.
(Quickie example: Estate has gross income of $6,000. An estate gets an annual exemption of $600, except in its final year, leaving $5,400 taxable at 15% to 28%, total $1,147. Individual tax on the whole $6,000 at 35% would be $2,100, leaving them $3,900 after tax. Ending the estate's taxable year just before final distribution would let it distribute the $6,000 - $1,147 = $4,853 tax-free to the heirs. Also, the heirs probably would be able to deduct the estate's expenses as "excess deductions on termination" of the estate as an itemized deduction, saving them even more individual income taxes; see page 49 of the official instructions for Form 1041.)
Not always, of course, because each situation is unique. But a CPA who is competent and experienced in estate matters can often spot savings opportunities that simply would not occur to most tax preparers - not even to most CPAs, who don't work with estates and trusts that often.
Don't forget the word "fiduciary". The executor has a duty, which will be enforced by a court, to act for the benefit of all the heirs. One of the duties is to act as "a prudent man" would act in preserving the estate's property, including avoiding unnecessary tax burdens on the estate and heirs. Simply carrying out the mechanical functions of preparing forms may not be sufficient to convince the judge - or the heirs - that the fiduciary responsibility has been met. As they say, "Where there's a will, there's a will contest."
Does the estate already have a CPA? Does it have an attorney who might recommend a CPA who is familiar with local probate matters?
As I said, I've been retired so long that I don't know what the current rules are, so check with our own CPA to be sure.
RC