My good friend Steve Hartnett, the Director of Education for the American Academy of Estate Planning Attorneys, has created a three part series of blogs intended to help people understand the basics of the taxation of trusts. This post discusses “Nongrantor” trusts. This kind of trust is not taxed to a “substantial owner” pursuant to the grantor trust rules, but rather has its own separate tax life. Such a trust must file its own tax return and the income of the trust would be taxed to it, unless distributed. Read on to learn more.