Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Michael Boyle is an experienced financial professional with more than 10 years working ...

Trust beneficiaries usually pay taxes on distributions from a trust's income but not on distributions of the principal. Beneficiaries receive a K-1 tax form with details.

Assets in a disclaimer trust are typically held separate and apart from the surviving spouse’s estate. And, as with a regular bypass trust, any remaining assets and any increase in their value after ...