The trustee of a trust is required by the trust agreement to distribute $5,000 of income yearly to James Madison and $10,000 of income a year to Peter Madison. The trustee has the authority, per the trust agreement, to make additional distributions to the two beneﬁciaries at his discretion. During 2012, the trustee actually distributes a total of $20,000 of income to James and $20,000 of income to Peter. The trust has DNI of $30,000 in 2012. What would be the taxable amounts of the income distributions to James and to Peter?

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The Answer of The trustee of a trust is required by the trust agreement to distribute $5,000 of income yearly to James Madison and $10,000 of income a year to Peter Madison. The trustee has the authority, per the trust agreement, to make additional distributions to the two beneﬁciaries at his discretion. During 2012, the trustee actually distributes a total of $20,000 of income to James and $20,000 of income to Peter. The trust has DNI of $30,000 in 2012. What would be the taxable amounts of the income distributions to James and to Peter?

The Trustee of a Trust Is Required by the Trust