Reported about 1 year ago
When inheriting a trust, only the earnings of the trust are typically taxed, not the principal, with taxation based on whether distributions are from the principal or interest. Trusts can bypass probate, speeding up the inheritance process and saving on court fees. There are various types of trusts, such as revocable and irrevocable trusts, each with their own tax implications. Trust taxation can be complex, and seeking advice from a financial advisor is recommended to navigate the nuances of estate planning and minimize tax liabilities.
Source: YAHOO