I’ve been reading about how some irrevocable trusts can shift taxable income to the beneficiaries instead of paying taxes at the trust’s higher rate. My understanding is that this only works if the trust allows those distributions to be treated as part of Distributable Net Income (DNI) — meaning the trust deducts what it pays out, and the beneficiaries report it on their returns via Schedule K-1. PLS HELP…
getting different answers from everyone
