One more note after re-reading. I think if the heir received money from the trust, then the heir declares it on their personal income form if they live in Massachusetts. If they live in another state, I am thinking that Massachusetts does not tax that money? Think about Fidelity. They hold billions for people outside of Massachusetts. I imagine that Massachusetts cannot tax these incomes. So where do you live (no need to answer)? Where does the beneficiary live?
