A trust can sell appreciated assets and distribute the cash without automatically shifting the capital gain to the beneficiary. Learn when capital gains stay taxable to the trust, when they enter distributable net income, and what trustees and beneficiaries should review before a distribution.

California estate and trust taxation depends on more than where a trust was created. Learn how Form 541, decedent residency, trustees, noncontingent beneficiaries, California source income, Schedule G, and beneficiary distributions determine California tax.