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"I believe the trusts' returns should include any capital gains..."
Capital gains are typically considered to be trust corpus and remain within the trust until the termination of the trust and final distribution.
However, trust instruments vary and some either explicitly state that gains are considered income (and must be distributed) or give the trustee discretion to treat the gains as income. Thus, you need to refer to the language in the trust instrument.
"I believe the trusts' returns should include any capital gains..."
Capital gains are typically considered to be trust corpus and remain within the trust until the termination of the trust and final distribution.
However, trust instruments vary and some either explicitly state that gains are considered income (and must be distributed) or give the trustee discretion to treat the gains as income. Thus, you need to refer to the language in the trust instrument.
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