Trust Growth Question

I recently became the trustee and income beneficiary of a trust, with my children set to be the eventual principal beneficiaries. My goal is to be a responsible steward of these assets and ensure my children achieve financial security.

However, I’m still trying to navigate the complexities of taxation. I understand that if the trust's assets generate income— dividends, interest, or capital gains from sales—that income must be distributed to avoid being taxed at the higher trust tax rate.

This raises a question: how can I effectively grow assets within the trust? For example, if I invest in a stock that appreciates in value but then decide to sell it, I would need to withdraw the gains or face the high trust tax rate. Is the only option to find long-term investments that I can hold for 40 years or more.

Am I on the right track with my thinking? I would greatly appreciate any insights.