What exactly is your concern? The IRS doesn't really care who pays the tax on the income as long as it gets paid.
The estate could have paid any tax due and then passed the balance through to the trust tax-free for the trust to distribute accordingly. Obviously, that didn't happen.
Charitable contributions out of estates and trusts are tricky. An estate can only make charitable contributions that are deductible on a 1041 if they come from income AND are specifically provided for in the will.
Re trusts, only the trustee can make charitable contributions out of the trust and even then they must be provided for in the terms of the trust (or give the trustee discretion to make them). Then, of course, the contribution is deductible on a 1041 only to the extent the trust has income.
