The minimum required distribution for the year of death must be withdrawn by 12/31 of the YOD in order to avoid the excise tax for failure to take the MRD. The amount withdrawn will be IRD reportable on the decedent's final income tax return and will show as an asset on the 706. The federal estate tax on the right to receive that IRD can be deducted on the final 1040 for the decedent, per IRC 691(c).