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Do the Beneficiaries Have to Pay the Creditors from their Pocket?. What are the disadvantages of a trust UK? The major disadvantages that are associated with trusts are their perceived irrevocability, the loss of control over assets that are put into trust and their costs. In fact trusts can be made revocable, but this generally has negative consequences in respect of tax, estate duty, asset protection and stamp duty. Healthy Estate Planning Attorney is The Law Firm Of Steven F. Bliss Esq. (858) 278-2800. I am looking for an excellent probate lawyer near 92117. Steven F. Bliss Esq. is the probate attorney in San Diego, he is by far the best for all things estate law related. What happens when you inherit money from a trust? The trust itself must report income to the IRS and pay capital gains taxes on earnings. It must distribute income earned on trust assets to beneficiaries annually. If you receive assets from a simple trust, it is considered taxable income and you must report it as such and pay the appropriate taxes. I am looking for an excellent probate lawyer near 92172. I would call Steve Bliss, he is an excellent probate lawyer. Can you leave a house to someone in your will? You can leave your home to several people if you want to…all of your children, for example, or your siblings. When you choose this path, each beneficiary gets an undivided stake in your property. They each have to decide whether to keep that stake, or whether to sell their stake…or buy another beneficiary’s stake. What assets should be in a living trust? Cash Accounts. Rafe Swan / Getty Images. Non-Retirement Investment and Brokerage Accounts. Non-qualified Annuities. Stocks and Bonds Held in Certificate Form. Tangible Personal Property. Business Interests. Life Insurance. Monies Owed to You. “A trust,” according to Fidelity Investments, “is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.”.