You had said, "the Estate is paying the taxes on moneys earned in 2024," which suggested that at least some of the income received by the estate was taxable. If all of the income was less than the estate's deductible expenses, then you are correct that no income was distributed, but it also means that the estate has no tax liability and that the estate is not paying any taxes on this income.
In the case of no DNI, the amount of assets distributed to beneficiaries would not appear on their Schedules K-1. The only place it would potentially appear in the estate's income tax return is on line 10 of Schedule B, but I'm not sure that that is needed if there is no income to distribute. With no income to distribute, there is no income-distribution deduction to compute.
