Given the following:
•basic complex trust (deceased), single beneficiary
•successor trustee established a new trust account with new Tax TIN
•trust allows trustee full control (no constraints on distributions or taxes)
•trust has 2021 (post death) deposit of $100K ($90K principal, $10K interest income)
•therefore trust received a 2021 1099-INT for the $10K
•deceased residence and state of new trust acct is FL
Can the Trustee distribute $7K of taxable interest to the beneficiary, and keep the remaining $3K taxable interest for the trust to pay in 2021 (note trust tax rate of 10% on first $2650)?
Can the Trustee distribute $97K ($90K principal + $7K taxable interest) to the beneficiary, and designate/keep the remaining $3K as taxable interest for the trust to pay in 2021?
Can either or both the deposit to the new trust account and/or the disbursement to the beneficiary occur in the 65-day rule window (Jan 1 - Mar 7, 2022) to apply for 2021 tax year?
