When the beneficiary sells the investment account assets (for a house deposit, for example), will they pay tax on the sale proceeds?
When the beneficiary becomes the owner of the assets, he/she would become responsible for reporting the income and paying the tax on earnings for each financial year.
When the beneficiary sells down some/all of the account (for house deposit), then the beneficiary may be responsible for any capital gains tax that might be a result of selling the assets.