"Payment of specific bequests, i.e., a specific sum of money or specific property, provided they are ascertainable under the terms of the will, will not carry out fiduciary income to beneficiaries. Thus, property distributed in cash or in kind to a beneficiary will not trigger a distribution deduction at the estate level or generate gross income at the beneficiary level."

https://nytaxattorney.com/2010/03/23/distributable-net-income-and-income-in-respect-of-a-decedent/

So DNI is split between the 2 remainderpersons.  At least that's the way I would do it, and when was the last time IRS audited a 1041?