Something is not right with that. I don't think a 1099R should have been issued to the Trust if the account was transferred to beneficiary accounts. I assume the Box 7 distribution code is not a G  They should probably go back to the brokerage and have it corrected or certainly explain why it was issued.  Either that or the transfers to the inherited accounts was the wrong thing to do. You can't have it both ways.

Since the Trust received the 1099R,  if they are not correcting it, I have no idea what to do with the income report. I know of no provision to add the income and then back it out on a 1041 form. You wouldn't pass it through to the beneficiaries on a K-1. It would show as other income and not as a IRS/Pension distribution There is  not provision for them to "roll over" on their returns.

I think the 1099R needs correction.