Sorry for your loss. As trustee, you need to file form 1041 to report the sale of the stocks by the trust. This requires the Turbotax Business app. For the acquisition date type "Inherited" (no quotes) that results in any gains/losses being treated as long-term which is proper even though the trust held them for less than a year. also, make sure the reporting uses date of death values as the cost basis.
As trustee, you must make a choice. If there were net gains, either the trust pays the tax and then the remaining cash is distributed tax-free to the beneficiaries or the Trust can distribute the net gains to the beneficiaries in which case they pay the income taxes.
If there were net losses and the trust terminated, the capital loss would be passed out to the beneficiaries to use on their 1040s.
All of this would show up on the k-1 generated for each beneficiary.
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