You can deduct all reasonable expenses incurred by the trust as a result of the property being held in the trust.
For example, fiduciary fees can be deducted because they are incurred only by certain entities, such as trusts, as a result of property/cash being held in the trusts. Expenses that a hypothetical individual would incur cannot be deducted simply because the property is held in a trust (e.g., investment advisory fees).
Funeral expenses are never deductible on Form 1040 or Form 1041; they are only deductible on Form 706 if that form is required to be filed (which is relatively rare).
