Business & farm

Complex trust in this case (income is not required to be distributed currently).

 

Any trust that is not a simple trust is a complex trust.

 

See https://www.irs.gov/instructions/i1041#en_US_2023_publink1000286059

 

A trust may qualify as a simple trust if:

  1. The trust instrument requires that all income must be distributed currently;

  2. The trust instrument doesn't provide that any amounts are to be paid, permanently set aside, or used for charitable purposes; and

  3. The trust doesn't distribute amounts allocated to the corpus of the trust.