- Trust that is required to distribute all of its annual income to the beneficiaries.
- Beneficiaries cannot be charitable.
- Income of the trust is taxable to the recipient, even if left in the trust to accumulate.
- Not allowed to distribute corpus (principal).
- Capital gains are considered part of the corpus.
Complex Trust (must have one of the following):
- Retains current income in the trust.
- Distributes corpus.
- Distributions to charitable organizations.
*Both the Simple and Complex Trusts are given deductions for the income distributed to beneficiaries, and both trusts are granted the standard exemption amount of $100.*
Revocable / Irrevocable Trusts
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