yes, you can but you get no tax deduction for the payment. personally, you will be paying 100% of the tax while only getting a portion of the net proceeds. what about the other beneficiaries. you may also have to file a gift tax return not that there would be a tax liability.
you also need 2 1099's - one for income earned by the trust before he died which will go on his final return and a second for income after he died.
what should have occurred is that the trust pays the taxes (since I can't see the trust document I can't say but normally it would pay his other debts and funeral expenses), for any income taxes owed on his personal return and taxes owed on the capital gains and other income of the trust after he died. normally it's the remaining cash that is distributed pro-rata to the beneficiaries.
