with a complex trust, income must be distributed during the year or within 66 days after year end as required by IRC 663(b(). there is also the question as to whether the trust agreement allows distribution of capital gains.
To make the section 663(b) election to treat any amount paid
or credited to a beneficiary within 65 days following the close
of the tax year as being paid or credited on the last day of
that tax year, check the box. This election can be made by
the fiduciary of a complex trust or the executor of a
decedent's estate. For the election to be valid, you must file
Form 1041 by the due date (including extensions). Once
made, the election is irrevocable.
