When you complete the Form 5227, you will create a Form 1041 K-1 which will give you your allocated income for 2021 based on your unitrust distribution (you have to take the worst income first (interest, ordinary dividends before qualified dividends, etc., all before capital gains - and then lastly tax exempt income). It can be very complicated. I created our trust in October and got fund distributions at the end of the year that exceeded the trust's interest and dividend distributions, so I will be carrying over the excess undistributed income items to next year before I can start allocating capital gains to my distributions. I hope you contributed the business assets to the trust before you sold them since you would have gain on the sales if you sold them outside of the trust. And make sure you get a qualified present value calculation for your charitable deduction. I came looking for advice on how to report the contribution with TT - found a helpful post. The instructions to Form 5227 provided in the other reply are pretty helpful, so read carefully - but still require some experience. Get good legal and accounting advice - I am not an expert.
