Revocable Living Trust - Capital Gains reporting *after* death of grantor.

You should definitely seek professional tax advice as well as legal counsel but:

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@jhunkins wrote:
* Is there a way to pass the capital gains on to beneficiaries in 2019 rather than report them as trust income, which is taxed at a higher rate?  

Yes, provided the trust instrument grants the trustee the authority to allocate the gains to income and distribute the gains to the beneficiaries.

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@jhunkins wrote:

* Does the "65 day rule" for income distribution usually apply to this type of family trust? 

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Yes, the trustee can make a 663(b) election provided the trust instrument does not expressly prohibit the trustee from doing so and the trust is a complex trust.

See https://www.irs.gov/instructions/i1041#idm140630130804880

sorry for your loss

generally revocable trusts become irrevocable upon death.  since it was a grantor trust,  then the stocks would get a step up to FMV on the date of her death or the alternate valuation date.   so if there was a lot of unrealized gains at the date of her death they would in effect disappear when the securities are sold or distributed after death - only subsequent appreciation would get taxed.  as to distributions, that depends on the wording of the trust. 

seek professional help because following the provisions of the trust are important.   trustees who ignore them can end up getting sued by the beneficiaries if they mess up.