Among a trustee’s duties, properly allocating receipts between principal and income ranks near the top. Payment from an individual retirement account to a trust illustrates this point. The allocation impacts the amount of the IRA’s income the trustee must count as income of the trust and, per its terms, distribute to a current income beneficiary. Will all, a portion or none of the income earned inside the IRA become income of the trust and then pass down to this beneficiary?
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