With her near-sightedness, and those tremulous fingers of hers, at once inflexible and delicate, she could not be a seamstress; although her sampler, of fifty years gone by, exhibited some of the most recondite specimens of ornamental needlework.
State taxes on family trusts vary, but federal laws require family trusts to pay taxes on income it keeps but not on any that is distributed. A trust that earns $50,000 and distributes it all to trust beneficiaries pays no income tax. The beneficiaries pay income taxes on funds given to them.
In terms of South African tax law, living trusts are considered tax payers. Two types of tax apply to living trusts, namely: 1  income tax â payable at a flat rate of 40% (individuals pay according to income scales), and. 2  capital gains tax (CGT) â payable at the rate of 26.6% (individuals pay 13.3%).