Complex Trust Distribution and taxes paid by Trust

I have a few Trust questions.  This is year 2 of a complex trust where no distributions are needed and taxes are being paid by the Trust currently as very low and under Trust tax rate.

There were originally 5 beneficiaries and 2 of them took all their funds out this year. 

Let's say person 1 took $10k, person 2 took $2k, and the other 3 took nothing out.

There should be no taxes owed to the beneficiaries as the Trust is paying all taxes.

Q1. Turbotax asks about tier 1 and tier 2 distributions.  Do I enter those amounts although Trust pays the taxes?  If I do, it allocates income to those 2? Or do I enter no distributions?  TT is not clear what to do.

I can't seem to make TT allow the Trust to pay any taxes due...  

Q2.  List of beneficiaries is calculating %...  based on those distributions I entered as tier 2.  Last year I entered the % each owned, there was no taxes due as Trust had a loss.  Since person 1 and 2 no longer have any ownership, how do I reflect this?

Trust was meant to last in perpetuity at the discretion of the Trustee to allocate income and and principal and decide whom can have distributions.

If I put no tier 2 in, then it shows on the beneficiary list that person 5 has 100%, it automatically calculates these fields.  Should this form show at year end % owned so person 3-5 each shows 33.33%?  How to do this?

Can anyone help explain how to enter this correctly so there is no DNI?  How to reflect owners at year end?

Thanks for all you do.