My mother died in 2019, and I subsequently sold assets and distributed proceeds, in state of California. For one investment, the capital gain was unexpectedly quite large, due to being a limited partnership.
Would there be anything to prevent me from reporting the gain as trust income, rather than distribute to beneficiaries?
Alternately, as trustee, is there discretion on allocating the gain differentially among the beneficiaries? Different beneficiaries received different proportional shares of the distribution.
