How is an annuity in an irrevocable trust taxed?

[DebitThatCreditThis]

Client is one of 3 brothers. 2 of the brothers are beneficiaries of an irrevocable trust which contains their late mother's annuity.

There is about $100k in annuity payouts in the trust at this time.

Client is asking me about how this whole thing is going to be taxed (at the trust level or at the individual level) in order to know whether he should withhold funds before distributing monies to the brothers.

I am a trust layman, so any help is immensely appreciated!

[Beersheba]

Not sure whether the annuity income is in the form of capital gains, or simply interest. If it is LTCG, the trust will pay the tax on Form 1041, and none of this income would be allocated to the beneficiaries. If the income is in the form of interest, it will flow to the beneficiaries via a K-1. Either way, the beneficiaries receive a K-1 even if shows zero allocated income.