Actually, the wording in the trust is" ... the principal of the Trust, together with any undistributed or accumulated income, shall be distributed as follows ...", which then goes on to specify that the first up to 150k is to be distributed equally among three people, with the remainder being divided equally between two other people. So, it does include income, not just the corpus. That said, does getting the first 150k, specified as a maximum amount, preclude them from sharing in tax losses (or owing taxes due to tax gains, if there had been any)? That is the question. If you are not sure, please just say so and, perhaps, someone else on this forum might know for sure. Thanks much!
