Living Trust Distr. After Final 1041/k-1 (litigation),amt Received Reduced By Legal Fees. Do Legal Fees Offset Dividends

[neddie]

Final 1041/K-1 types done by trustee in 2010, then litigation happened. Resolved 2013, beneficiaries received distribution via Trust Lawyer. Dividends / capital gains accrued in the course of time held in trust. Trustee sold mutual just before distributing and paid legal fees out of funds just ahead of distribution. Do these costs offset dividends and/or capital achieve for beneficiary tax purposes(or are they reported as misc deduction on schedule A)? Legal fees greater than income/dividends/cap gains.