distributions to beneficiaries

state of tennessee.
decedent's estate inherits from estate of spouse who died 2 months earlier. decedents's right to "elective share" challenged by spouse's estate. civil litigation (related to death of decedent) pending against family member of spouse (beneficiary). global settlement reached releasing all claims against spouse's estate and civil action. spouse's estate has filed schedule k-1, crediting interest earned by spouse's estate to decedent's estate, based on "distribution" of funds related to settlement. Decedent did not receive interest income directly. If the settlement was general to release all claims and the check for settlement was not issued by spouse's estate, was this a "distribution to beneficiary" and is the interest earned properly credited to decedent's estate?