While there are exceptions, transfers of trust assets to beneficiaries can generally be made without tax consequences to either the trust or the beneficiary.

Question

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Transfers of trust assets to beneficiaries are generally not subject to tax consequences as long as certain conditions are met, such as the assets being distributed in accordance with the terms of the trust and the trust not being subject to certain tax requirements. However, there may be exceptions or special circumstances where taxes could apply, so it's always advisable to consult with a tax professional.

While There Are Exceptions, Transfers of Trust Assets to Beneficiaries