If you were the beneficiary of the trust set up by your grandmother on her death than you inherited the interest on her death and the basis for the stock will be the fair market value of the stock as of the date of her death. Your father was only the trustee and you did not inherit the assets from him.
If the trust was formed when your grandmother was alive and it was an irrevocable trust than you would have a carryover basis from her.
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Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.
What kind of trust was set up? Did she retain any interest in the trust?
If it is a testamentary trust than it was created by a will after your grandmother's demise and hence was included in your grandmother's taxable estate. Hence your basis in the stock will be the step up basis as of the date of death of your grandmother.
You will take the cost basis as the fair market value of the stocks on the date of your grandmother's death.
Yes, you will use the cost basis based on your purchase cost for additional purchases.