The answer to whether or not a Trust requires a Federal Tax ID number depends upon the type of Living Trust that is created.
Most Revocable Living Trusts do not require obtaining a Federal Tax ID number, even with named beneficiaries.
Irrevocable Trusts, on the other hand, usually require that such number be obtained.
How the distribution of assets is treated subjects the beneficiaries of each type of Trust to different accounting practices. For details on that topic, we suggest you consult with your tax professional.