Is a family trust annuity taxable by IRS upon distribution to inheritance?

cls: Is a family trust annuity taxable by IRS upon distribution to inheritance?
As beneficiaries of an annuity listed under a family trust, is this money taxable by the IRS. If so, is it taxable to the decedent’s tax or the beneficiaries taxes? Is just the money earned from the annuity taxable or is the whole amount of the annuity taxable?

Answers and Views:

Answer by tro
the trust pays its own taxes, usually if the trust exists for some years, has income exceeding $ 600 it files an annual tax return and pays the taxes each year—pretty steep taxes too
when the trust is terminated and assets are distributed, any taxes that are due are paid by the trust, the heirs get their portions free and clear, as inheritance which is not taxable, except in some states