Our Mother died and the Irrevocable Trust sold our family home that it has owned for 14 years. Proceeds were distributed to benefactors who pays the taxes on the income?

The trust must terminate after her death there will be a capital gain based on on basis price of $283,000.00 and the home was sold to 3 brothers for $480,000 the 6 children received about 64,000 rolled in equity for the 3 brothers to buy the existing home and distribute to 3 sister in cash proceeds.   There were passive losses accumulated over the 14 years that amount to $120,000 which will offset our capital gain divided by 6 through the K-1 but how will the 64K be treated per sibling? Is it paid by the trust through the 1041 or is it ordinary income to each individual child, please advise.

Thanks

Joe [Personal Information Removed] Executor of my mother's Estate and Trustee to the Trust that Sold the house.

[Personal Information Removed]