Is a state tax refund taxable on an estate 1041, when the standard deduction was taken by the decedent??

I was recently provided a K-1 by a client for an estate to use in amending the client's 2023 tax return.  The estate was opened and closed within the first fiscal year, so there was only one 1041 filed for the estate.  This 1041 was for an estate, not a trust, and it was the only return filed for the decedent after the final personal return was filed.

On the decedent's final personal returns, she did not itemize deductions; the standard deduction was taken, and a state tax refund resulted on the final personal state return.  The 1041 for the estate has included the refund from the final personal return as income.  

I know there are some different rules for estates and trusts as compared to personal returns, but it makes no sense to me why the state refund was included in the estate's income when there was no tax benefit received by the deceased taxpayer itemizing taxes on the decedent's final personal return.

Am I overlooking something?  Any assistance will be appreciated.

Many thanks!