You need to have authority (i.e., discretion), as trustee, to distribute capital gains and principal to the beneficiaries.
Assuming you have the authority, as granted in the trust instrument, then the property you distribute via K-1s carries with it DNI (distributable net income).
You can make an election (a 663(b) election) that allows you to treat distributions made to beneficiaries within 65 days of year-end to be counted as prior-year distributions. Thus, you could wait and make your 2021 distributions after December 31, 2021, but before circa March 16, 2022.
Unless you understand each and every aspect of the foregoing, as well as basic trust accounting, you should seek professional guidance with respect to this matter.
