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Deductions & credits
@Opus 17 wrote:this forum really isn’t equipped to deal with this kind of problem and we should really just stick to the tax issues.
My one and only suggestion was for the OP to consult with an attorney. Re the tax issues, many of the statements in your (now recommended) post are simply not accurate and/or based on clearly erronerous assumptions; in fact, it appears as if you do not understand what occurred at the inception of this trust, the parties as they were then and are now currently, and the legal implications thereof.
You may not be equipped to deal with this kind of problem, assuming you are not an attorney, but I have been dealing with issues of this nature for over 35 years. Having so stated, I agree that this forum is not equipped to deal with this type of issue, hence my suggestion that the OP secure legal counsel.