I think so.
”
Definition of a simple trust
There are three basic characteristics that define a simple trust:
1) The trust must annually distribute to the beneficiaries any income it earns on trust assets.
2) The trust cannot distribute the principal of the trust.
3) The trust cannot make distributions to charitable organizations.
When this type of trust is used, the trust income is taxable income for the beneficiaries, even if they don't withdraw the income from the trust. Capital gains taxes are applied to the trust itself.
Definition of a complex trust
A complex trust is essentially the opposite of a simple trust. To be classified as a complex trust, it must do at least one of three activities within the year:
1) The trust must retain some of its income and not distribute all of it to beneficiaries.
2) The trust must distribute some or all of the principal to the beneficiaries.
3) The trust must distribute some funds to charitable organizations.”
