Form 1041 Distributions to Beneficiaries

[nosillo2]

Is transfer of stock considered distributions to beneficiaries and reported on Form 1041 allocated to each beneficiary?  The beneficiaries wanted the stock instead of selling.

Thanks

[M-MTax]

No, that's a distribution of corpus (an in-kind distribution). 

The beneficiaries take the basis of the trust or estate.

[nosillo2]

It should not be included under distribution but what is basis on estate?

[M-MTax]

The estate's basis is typically the FMV on the date of death of the decedent.