when and which are trust fund non-taxable?

Answer 1

Usually all trusts are run with a charitable clause in the Article of Association and thus are not taxable.

Answer 2

a trust unless given to a tax exempt organization will be taxable to the beneficiaries when the trust is terminated and the proceeds are distributed to the heirs. this is a subject that most people do not understand. a trust under almost all circumstances does not escape taxation and will be taxed completely(less the federal unified credit). the belief is the rich do not pay estate or death taxes and this is just not the case. the assets or monies held in a trust are tax deferred to a later date and enable the trustee to continue the wishes of the grantor of the trust to carry on the grantor's desire such as to distribute to the heirs (taxable) to give annual gifts to heirs ( up to the 12,000 annual limit) (not taxable) and to bequeath or distribute to one or more tax exempt charities as the grantor has specified or outlined (not taxable) this is the reason that a large number of trusts are created each year and many of those continue on for many years to simply DEFER the taxes in to a later period.