@collinsb032 wrote:
....An attorney on youtube also mentioned inheritance does not get K-1, but rental income would....
I believe the attorney was referring to the actual property and not income or gain generated by the property (e.g., rental income, interest, dividends, et al).
You can generally distribute principal (corpus of the trust) without incurring any tax liability. With respect to income or gain generated by the trust, either the trust or the beneficiary(ies) will incur tax liability.
[by the way, youtube videos are fine for learning how to install a garage door opener or fix the flapper in your toilet tank but not so good for learning tax law]
