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.
If the estate or trustâs decedent had a tax home in a state with a state income tax, you must also file state income taxes. Like individuals, partnerships, and corporations, estates and trusts have the ability to earn income â which means that income is subject to income tax.