You need to consult a local tax professional and/or legal counsel.
A grantor trust (aka revocable living trust) is a disregarded entity for federal income tax purposes. As such, income from a grantor trust can either be reported on the grantor's individual income tax return or on Form 1041 with a grantor information letter (or statement), but not on a K-1.
If you distribute corpus to any of the beneficiaries from a grantor trust, you are essentially making a gift from you directly to those beneficiaries and, depending upon the amount, may need to file a gift tax return (Form 709).
Please seek professional guidance for this matter.
