This is a problem. You cannot file it as self-employment income if you're getting a K-1 from an estate or trust. It should be reported on Sch F by the estate or trust and that flows through to box 6 on your K-1. Then you report it on Sch E as ordinary income but not subject to self-employment tax. The trust or estate may "materially participate" but not you because you're a beneficiary. The upside is you don't have to pay self-employment tax on the income.
