If you receive a K1 from the trust, that information would need to be reported on the recipients income tax return. If you don't know, ask the trustee if one should be expected.
Inheriting a property is not reported on an INCOME tax return since it is not INCOME ... selling the home would produce the income. For now it is housed in a trust then leave it there unless you have a reason to move it ... and if it produces no INCOME then the trust doesn't need to file an INCOME tax return either.
what type of trust - simple, complex?. what type of property? what does the trust instrument say as to termination, distribution of assets, and whether or not the income is passed out to the beneficiaries since we don't know we can't answer. see a lawyer
also the trustee must file a tax return .
if the property is real estate, then the proper tax treatment can be quite complicated especially if it is rental property.
Complex - 1/3 at age 21 and remaining at age 25. She is currently 19 and sole beneficiary. Property is not rental and currently vacant, and is currently in escrow, although there is an easement to the property making it difficult (whole other issue). Income includes property and liquid assets. Trustee is willing to either submit for a K1 or file with the trust, and requesting that beneficiary make the decision as to which.