Is this a grantor trust? Are you a beneficiary? Are your parents beneficiaries as well?
If you are a beneficiary, then whatever share you received as a beneficiary would be a gift to you (as a beneficiary). A gift tax return would need to be filed if the value was greater than $17,000 (for 2023) or $18,000 (for 2024).
The gift would be based on the fair market value of the property on the date of the gift. The trust's basis would be a carryover basis (essentially, your parents' adjusted basis).
If the trust, as a nongrantor trust, files an income tax return, you should receive a K-1 (1041) from which you would report your share of the income, gain, deductions, etc.
