Our mother passed away in 2022 and all of her assets were cashed out and placed in a Trust Savings Account (earming almost zero interest) all in 2022. This included cashing out an IRA, some stock and selling her home. The executor (one of the 6 beneficiaries) filed the deceased tax return and paid taxes on the IRA and Capital gains along with her SS taxes, etc. on her 2022 return. This was substantially higher than her normal tax due to the gains. The total estate was valued at less than 300k (including property). The distributions were made in May 2023 to the 6 beneficiaries of the trust and since the taxes were paid by the trust in 2022, we were told that no K1s were necessary and no federal taxes would be due. Is that correct? The 6 beneficiaries reside in Arizona and Missouri (which has no estate tax) and Illinois (estate tax only if over $4M). We just want to make sure this is correct. Thank you for your help!
