Hi @BrendaJ1 !
Great question.
Basically, yes the trust is now its own tax entity and must file its own tax return if there is taxable income. Selling stocks, or receiving dividends or interest, would be taxable income for the trust, and would mean the trust is required to submit an income tax return, Form 1041.
I hope that helps you!
All my best,
Adam, EA
TurboTax Live
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