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Level 15

Retirement tax questions

"... can I say that certain beneficiaries received more of the income portion..."

The short answer is "No" (explanation follows).

You can allocate different classes of income to different beneficiaries only if a specific allocation is required in the trust instrument and, even then, only if the allocation has an economic effect independent of the income tax consequences of the allocation. IRC §1.652(b)-2(b)

Importantly, allocation pursuant to a trust provision granting the trustee discretion to allocate different classes of income to different beneficiaries is not a specific allocation. See IRC §1.652(b)-2(b)(1)

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