Thanks to @Anonymous_ and another financial adviser I found the following answers to my scenario.
1. If the estate does not make any income from the sale of property owned by the trust or have any Dividend and Interest made from stocks and things like that, I don’t need to file the 1041.
2. I may get a letter from the IRS asking why I didn’t file a 1041 for the year and if so that is when I can respond with my scenario and that would be it.
3. I did make payments to the mortgage after he passed and the mortgage was transferred to the Trust’s EIN. Therefore the only tax return that can claim the mortgage interest and property tax benefits is if I do a 1041. But the cost of that is around $200 and without taxable income, the tiny deduction wouldn’t really benefit me.
4. This year when I sell the estate, I will need the 1041 to claim the capital gains of the sale minus other stuff and disbursement of inheritance.
