1. I have to presume you have the authority to treat capital gain as income and distribute it to the beneficiaries. The gain will either appear on the 1041, the trust will pay the tax, and the beneficiaries will receive their share of the cash without any tax liability OR the trust will pass the gain through to the beneficiaries on their K-1s and the trust will receive an income distribution deduction (IDD) for that amount.
2. You don't have to report the transfer of stock to you from the trust. That is a distribution of corpus and you will take the trust's basis. It does not need to be reported on the trust's income tax return.
