@taxdean wrote:
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 makes a world of difference! In that case, you are correct in terms of sharing ratably. Handle the return in that manner.
