even what you refer to as an irrevocable living trust can be treated as a grantor trust for federal tax purposes. state taxation would follow. check with the lawyer who drew it up. make a mistake and the wrong entity would end up paying taxes.
I've created a "irrevocable living trust" but because I retain certain powers, the IRS say it's a grantor trust and I get taxed on all its income. In fact since I never filed for an EIN for the trust, I don't even need to file a return. if a grantor trust, because it has an EIN a return will need to be filed but it is treated as a disregarded entity.
