Series 66: 4.1.3.1.3.1. Taxation Of A Trust

4.1.3.1.3.1. Taxation of a Trust

Complex trusts can either distribute income to beneficiaries or not distribute it. Simple trusts distribute all income to beneficiaries. When income is distributed to beneficiaries, it is reported by the beneficiaries and included in their taxable income. The trusts themselves do not pay taxes on this distributed income. Trusts do pay taxes on income they do not distribute to