mm1
Level 5

You mentioned Simple Trust.

In a simple trust all income must be distributed to the beneficiary including capital gains in the year of income. There is a 65-day rule that states that the income can be distributed within 65 days after the year end to give the fiduciary time to close the year and determine the income. But if it is a simple trust, it is not discretionary and capital gains along with all other income after expenses must be distributed to the beneficiary. At least that is my understanding of the rules. There are a few exceptions but they are rare.

0 Cheers