Someone creates an irrevocable trust on behalf of someone. It is funded by a large amount of money that will be invested. The beneficiary will receive the profits/interest from the trust but not the whole amount.
Who is responsible for the income taxes of the money in the trust? The donor, the trust itself or the beneficiary.
It seems to me that the beneficiary should only be taxed on the amount he/she receives. So who pays for the rest?