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The trust cannot possibly be classified as a "simple trust" unless the trust instrument requires that all income be distributed currently. See I.R.C. §651(a)(1)
A trust qualifies as a simple trust if:
The trust instrument requires that all income must be distributed currently;
The trust instrument does not provide that any amounts are to be paid, permanently set aside, or used for charitable purposes; and
The trust does not distribute amounts allocated to the corpus of the trust.
The trust cannot possibly be classified as a "simple trust" unless the trust instrument requires that all income be distributed currently. See I.R.C. §651(a)(1)
A trust qualifies as a simple trust if:
The trust instrument requires that all income must be distributed currently;
The trust instrument does not provide that any amounts are to be paid, permanently set aside, or used for charitable purposes; and
The trust does not distribute amounts allocated to the corpus of the trust.
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