Inherited IRA – Date Taxes are Due ?

Client died in 2007. Children beneficiaries of 401k plan with outstanding loan balance. If children wait until 2008 to take RMD from inherited IRA (in addition to waiting until 2008 to transfer 401k to inherited IRA), will the decedant have to file income taxes for 2007 for year of death, in addition to filing 2008 income taxes for taxable loan distribution ?