mattgutz, hi, I saw your question and thought I would comment as I have read a lot on NOL and Capital Loss carry forwards in the Final Year. The instructions for the K-1 entries are specific to where they go on a form 1040. Individual Beneficiaries.  Since Trusts are treated as a Separate Entity I'm not sure you can take the loss on another Trust return.  I think it will require a little more research regarding Abusive Trusts and maybe Related taxpayer issues? Good luck with that one!