If you are currently making distributions from a retirement fund to a charity, those will be taxable to you. However, if a qualified charitable distribution is made directly from an IRA account to a qualified charity, and you are over the age of 70 ½, that will not be taxable. However, it is limited to IRAs, and there are other exclusions and considerations as well. You should discuss this with your retirement fund advisor to make sure these donations are done correctly so that your IRA distributions are not taxed.
If at the time of your passing, your retirement accounts transfer to a trust, there is no tax on that transfer. If the investments earn income before being distributed, it is possible that the trust could pay tax on the income. When the money is distributed to the beneficiaries of the trust, those beneficiaries will get a K-1 to report their income. Whether the funds go to a trust or directly to an individual as an inherited retirement account, they are only taxed on the amount that they withdraw each year.
