If a Grantor of a Family Trust is alive and the sale of a home goes into a family trust. Does the Grantor or the Family Trust the funds go into pay capital gains.

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Trusts can have various terms.

If the trust is a grantor trust, then the trust is generally disregarded for federal income tax purposes; the grantor is treated as the owner of the assets held in trust and is responsible for reporting income and gain.

See https://www.irs.gov/instructions/i1041#en_US_2022_publink1000286019