The 505 Fix

There can be serious tensions with beneficiaries when a trustee is required to distribute all of the trust's income currently (meaning, it's a mandatory income trust) and the trust holds an interest in a partnership or other pass-through entity. The problem stems from the fact that such trusts report their distributive share of the entity's income, but don't always receive all of the entity's income.

There can be serious tensions with beneficiaries when a trustee is required to distribute all of the trust's income currently (meaning, it's a mandatory income trust) and the trust holds an interest in a partnership or other pass-through entity.

The problem stems from the fact that such trusts report their distributive share of the entity's income, but don't always receive all of the entity's income. Indeed, the entity sometimes distributes only enough for its owners (including the tr

All access premium subscription

Your subscription will include 12 months of Trusts & Estates magazine and access to premium content on WealthManagement.com.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish