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 the event that the grantor becomes unable to handle his own affairs during his lifetime, the trust can provide for a successor trustee during the grantor 's life. Understanding trusts The income that a trust receives is taxable to the trust, beneficiaries or grantor, depending on the type of trust.