conversation: User (soverysmart): "Hi /r/pf,\n\nI'm lucky to be the beneficiary of a trust with significant unrealized long-term capital gains. Because of my low AGI, I think I might have an opportunity to harvest those capital gains without incurring federal tax.\n\nI have noticed that there are separate tax rules for trusts. If my trustee were to realize those gains within the trust (by selling assets and then buying them back again), would the tax treatment be any different from selling those assets, distributing them to me (and then I buy those products in a personal brokerage account)?\n\nWhat I am asking is, is there any way for me to take advantage of room under the 25% federal income bracket? Or under what circumstances would I be exposed to the lower bracket that applies to trusts, and how can I avoid it?\n\nThank you to the community."
  Self: "If the trust sells the assets, they'll pay the tax if they keep the income.  However, if they distribute the proceeds, or distribute the assets themselves before the sale, then you'll pay the tax on that income.  You need to discuss with the trustee and see what the trust documents state about distributions."
  User (soverysmart): "Thank you this is extremely helpful"
  