You will be paying taxes on the income, but it is considered income that is "credited to your account" for your benefit in the trust, whether you take the  money out in the current year or not.

The trust generally has a higher tax rate than the individual beneficiary so it would use up the trust money faster and it wouldn't be there for you later.

You are at a lower tax rate and the beneficiary paying the taxes is a money-saver in the long run.

The trust agreement generally has rules and guidelines to follow distributions and taxation, etc.

:[Edited 04/05/2021|7:31 pm pst]