this sounds like a complex trust. under IRC 663(b)(2)
If within the first 65 days of any taxable year of an estate or a trust, an amount is properly paid or credited, such amount shall be considered paid or credited on the last day of the preceding taxable year.
so to get a deduction for distribution to beneficiaries the trust had to make an actual distribution (cash or property) either during the tax current tax year or within the first 65 days of the next year. failure results in no deduction.
