Do I pay taxes on trust fund?

Every year, $11k has been added to a trust fund for me and my family (poor me). This is the limit to not be taxed as a gift. When I access the money from the fund, will I have to pay income tax on it? Or is it just that the capitol gains are taxed like an investment or mutual fund?

Thanks!

You would never pay tax on a principle distribution from the trust. If a trust makes a distribution to you that distribution will carry out any income earned by the trust up to the amount of distribution to your personal return.
The reason the prior answer stated that you may be better off having the trust distribute the annual income to you is that the trust reaches the 35% federal tax barcket at $10,450 of taxable income while you don't reach that bracket until you have taxable income of $336,550. So you would probably save taxes by having the income of the trust taxed to you.

The trust pays its own tax on income--interest and dividends probably--in the trust. You will not have to pay income tax on distributions unless the distributions include trust income. Depending on your situation, it might be more advantageous for you to pay tax on the income instead of the trust.

The trustee can answer this.

Yes the trustee will send you a Form 1041 Schedule K-1 showing your income for any year that you take money out.

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