I liquidated assets from a beneficiary IRA that was registered in a trust. These assets had been held by my mother in annuities and she was 75 yrs old when she passed away this past august. I have been advised that when these assets are divided among the beneficiaries of the trust that we should all make an estimated payment and that we will receive a K1 form to report the amount each of us receive as regular income for 2014. My question is do I need to hold out a percentage to cover taxes that will be due on the distribution from the TRUST? I should receive a 1099 for the trust based on the distribution of the assets, and that would be offset by the K1 form amounts, but should I hold back a percentage or make an estimated payment for the Trust to cover the distributed assets? In other words, will the assets be taxed on the trust as well as the individual returns?