In this old original question, the fact that a Form 1099-R was issued to the trust suggests that a distribution was paid to the trust from the inherited IRA and has nothing to do with assigning the inherited IRA out of the trust to the trust beneficiaries. Assigning an inherited IRA out of the trust to trust beneficiaries is not a distribution from the IRA and is not reportable on either a Form 1099-R or on any part of an estate income tax return.
