my conclusion is pretty much similar to yours ... this was after first, I was informed by the trustee that while his 'fee' was taxable, mine would not be. However, later after discussing with another CPA, apparently they said that portion of the trustee's fee (which is free to use anyway that trustee believes supportable) sent to me, was now taxable ... my position, as a beneficiary, that doesn't change tax categories under the scenario I've presented. thanks again -
