Living trust 1/3 property buyout - funds to non trust beneficiaries

[AMM277]

Looking for advice on how this will be handled for tax purposes.

My now deceased mother’s siblings are buying out her (now her estate’s) 1/3 interest in a property she was a 1/3 beneficiary of via their parents living trust. Her estate’s sole beneficiary is my father but they’ve come to a settlement agreement where the purchase of her 1/3 interest in this property will be distributed directly to myself and siblings at cash value of 1/3 of the appraised value.  Looking for proper handling and tax implications down the road.

[MarilynG1]

The estate will report the sale of the one-third of the property and report the distribution on Form K-1's.

Here's info on Entering Form K-1.

@AMM277