To answer your questions:
- Your understanding of the Estate and Trust returns is correct
- Even if there weren't any distributions, there still may be some items that are split among the beneficiaries (taxes, contributions, deductions, etc.) It may not amount to much, but if the beneficiaries are in a hurry to file their own returns, they can always file now and amend, if necessary, later.
- Grandkids - No - you don't have to include them as beneficiaries. Since the stock distribution was separate, don't include that in the estate.
- Did you apply for the EIN in the estate's name or the trust's? Since they are separate entities, they should each have their own EINs.
Good luck!
