Usually no, usually the trust fund already paid tax.

回答: Is trust fund distribution taxable?slow_quick2024-06-21 12:44:58

Trust fund principal are usually after-tax asset from their ancestors, so the payout of principal is not taxable.  It's just a gift. 

There might be incomes and capital gains on the trust fund principal, usually these are taxed in the trust fund and the trust already paid the tax.

Usuallly trust fund distribution is not taxable income.   It's like a gift. 

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