The income earned by the trust up to the point of death would be reported to the grantor. Any income from cashing the bonds after date of death would become income of the trust. In order for the income not to be taxed at the very high trust tax rates, be sure to make an income distribution to the beneficiaries before the trust year end of the trust so the savings bond income will be taxed at the lower marginal tax rates of the beneficiaries.
How do I input this on TT, since the 1099 was issued to the trust for the total amount and the money was issued to the beneficiaries. However, all of the interest was earned up to the date of death, none after.
The K1s kick the interest back to the beneficiaries, but it should go to the deceased grantor of the trust.