Simple Trust
Learn about simple trusts and how they distribute income annually to beneficiaries. Discover key features and benefits for estate planning families.
What are the tax implications of a simple trust?
Simple trusts typically don't pay federal income taxes on distributed income since beneficiaries report it on their personal tax returns. The trust may only pay taxes on any undistributed income, though simple trusts are required to distribute all income annually. Tax situations vary, so families often consult with tax professionals for their specific circumstances.
