I have obtained a copy of the Trust Documents and it is a Living Trust that allows distributions from the GST Exempt (Principal) upon discretion of the trustee. This Trust was established in 1988 and states clearly that her spouse as trustee should be distributed the income annually of the trust and the other  named beneficiaries who are children to the deceased at the trustee's discretion get distributions from the principal of the Trust Assets. My original question still stands, is there a place on the K-1 to report TAX Free Distributions?