Hi Kevin,
Thanks for the great question. If you are the beneficiary of a trust, you are responsible for paying tax on your share of the trust income that's distributed to you. The Schedule K-1 you receive details your share of the trust's income, deductions and credits, which you report on your tax return.
Capital gains will be taxed at 0%, 15%, or 20% based on your total taxable income and your filing status. Here is a great link to the federal and state short- and long-term capital gains tax rates for 2021, based on taxable income.
Thanks,
Akil C.
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