@Mike9241 wrote:
for there to be a distribution of income . money or property must be distributed and the tax laws say this must be done during the year or within 66 days after year-end.
The income does not have to be actually distributed, it is deemed distributed, for the purposes of federal income taxation, if provided for in the terms of the trust.
Section 652(a):
....the amount of income for the taxable year required to be distributed currently by a trust....shall be included in the gross income of the beneficiaries to whom the income is required to be distributed, whether distributed or not...
