I’m working on a trust return in which the trust received $300,000 form IRAs/Annuities. There are 3 beneficiaries (all adult children of the deceased). The only distributions from the trust in 2020 were for the deceased’s funeral expenses. I know the funeral expenses are not deductible by the trust.

Would that scenario require the trust to pay tax in full on the IRAs/Annuities?

Can the IRA be "deemed to have been distributed" to the beneficiaries so that I can push the income down to the beneficiaries (on their K-1) and have them pay a lower overall tax?