Thank you for your insights!

Do you think a 645 election could still be made?  Date of death was 10/31/2023, no filings done 😞  

This situation is this - 

The uncle died leaving his house to his nephew, niece, and stepdaughter equally.  The trust states the house was to be sold and distributed to the trust of the nephew, the trust of the niece, and outright free of trust to the step daughter.  They did not sell they house but used a distributive deed in June 2024.  The distributive deed allocates it 50% to the nephew's trust and 50% to the niece's trust and the niece/nephew paid 1/3 value to the step daughter in cash. 

This would be treated as an inkind distribution, not needed to report on the K-1 and the niece/nephew get the step up in basis - correct?

Additionally, the uncle's trust established a family foundation with the requirement that distributions may be made at the wish and desire of the settlor to a qualified charitable recipient.  He also named a third party to be involved in the decisions of the donations.  The three people (nephew, niece, foundation rep) have not agreed and funds have not been released from the uncle's trust to the foundation.  Since the foundation has not been funded and thus no income, no tax return will be filed but the earnings left in the uncles trust are taxed at trust tax rates.  Am I missing anything?

Thank you very much for any thoughts to consider.