New tax rules impact how beneficiaries are taxed on estate income.
The article explains how beneficiaries of a deceased person's estate or trust are taxed. It discusses how income distributed by a trust affects the beneficiaries' gross income, even if not actually received. Deductions of a trust are allocated based on specific principles. If a beneficiary's tax year differs from the trust's, the beneficiary includes the trust's income for the tax year ending within their taxable year.