Thanks for your inquiry. Trustee is a bank and they were notified. Trust was setup for the benefit of child (whom is now the deceased taxpayer). Once child passes, the trust will provide income to the heirs and their children.

The trust will continue for another few years until it is dissolved with corpus distributed in those future years.

Further analysis of the statement & transactions detail that make up the K-1 for the year ending 12/31/21

1/) $10k earned in dividend income

2) $2k distributed to beneficiary (taxpayer) on 3/1/21 (reflected on the K-1).

3) $1k paid towards Q3 income tax on 9/10/21. (Total distribution of $3k).

As the full dividend earnings of $10k at 12/31/21 was similar to the earning reported on the prior year's (2020) return; my thought is that the portion that was paid as a distribution at 3/1/21 of $2k has already been allocated & represents the amount that goes to the final return (1040). Earnings remaining (undistributed) from the $10k; likely to be allocated to the trust.