Can Principal and Income be Distributed from one SubTrust to another SubTrust?

I don’t see why not. My late father’s attorney established SubTrusts under the main Trust. Per the Trust document when the Beneficiary of one SubTrust who is 89 years old passes away the remaining Beneficiaries inherit her share. If she did pass away I would think if the principal is transferred from her SubTrust bank account to another SubTrust’s bank account this would be a non tax event. However if money from her inherited IRA in her SubTrust is Distributed to another SubTrust, which has its own Tax ID, a 1041 K-1 could be issued and would be taxed at the 37% Trust tax rate (if exceeding $15,650 income) and it stays in his SubTrust or it could be distributed via a K-1 directly to the individual rather than his SubTrust and thus a potentially a lower tax rate than 37%. Am I correct? Did I miss anything?