Permalink Submitted by mk foss on Wed, 2010-12-29 23:53
A simple trust distributes all of its income. If a simple trust distributes principal as well as income, it is treated as a complex trust for that particular year. It can return to being a simple trust whenever it distributes income only. A complex trust thatis required to distribute all of its income gets the $300 exemption allowed to simple trusts.
Permalink Submitted by mk foss on Wed, 2010-12-29 23:53
A simple trust distributes all of its income. If a simple trust distributes principal as well as income, it is treated as a complex trust for that particular year. It can return to being a simple trust whenever it distributes income only. A complex trust thatis required to distribute all of its income gets the $300 exemption allowed to simple trusts.