In general, distributed income is taxable to the beneficiaries (via Schedule K-1), and the trust pays taxes on on any income retained by the trust. A Complex trust can treat distributions made with in the first 65 days of the year as having been made the previous year. So, if the trust in question is a complex trust then there may be a timing issue causing the issue.
Simple Trusts are required to distribute all trust accounting income (interest and dividends) in the current year. Some tax software will assume the income is distributed as required; however, that doesn't mean the income actually gets distributed. The broker/dealer may not have paid out the income to the executor or the beneficiaries.
It sounds like you need to have a conversation with the executor.
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