Say you gift money to a discretionary trust. As I understand it, at the end of each financial year the trust has to distribute funds to its beneficiaries. Does it also have to distribute the money that it received as a gift? Another scenario. Say the trust has served its purpose and will be closed. The money gifted to the trust has to be distributed to the beneficiaries. Will this money that was gifted be taxed once received by the beneficiaries?