Legal Question in Wills and Trusts in California

Your question does not make sense. A K-1 is a tax reporting tool for the administrative trust. It is independent of the actual distribution, which is a trust accounting matter. The interplay of the tax and trust accounting rules are somewhat complex, and depend on the operation, terms and status of administration of the trust itself. There is no single code section that governs your question, as it involves both federal and state tax issues, probate code provisions and the terms of the trust. If you have questions about the K-1, I would suggest you contact the accountant doing the trust return.