UPDATE:
I figured out how this process works! My main issue was how to pay the taxes since the trust had been disbursed. Well, since I marked the box that this was the final return for the estate, the tax software automatically filled out schedule K's for the beneficiaries based on their % of the estate. All I had to do was mail them out and the trust itself was not required to pay the taxes due. The beneficiaries added their portion of the "income" to their own tax returns. Easy Peezy
I do actually question whether the charge off was legitimate. After 2 years, I never received an invoice, a letter, a statement or a phone call regarding this account. I just get a 1099-C out of the blue. I thought it was odd, but there was no more money in the trust to pay an attorney to investigate and I wasn't a beneficiary, so no skin off my nose
