Legal Question in Wills and Trusts in Florida
Must the income from a trust be distributed annually when the trust document has no provision regarding the income.Currently the income is added to principal and no distributions hav been made
Asked on 3/26/10, 6:21 pm
1 Answer from Attorneys
David Labovitz
Labovitz Law Firm, P.A.
No, although it depends who you are distributing to and what you are trying to accomplish. For example, for tax purposes, some marital trusts require mandatory income distributions at least annually. Also, it's usually much cheaper from a tax perspective to distribute income to beneficiaries rather than roll it back into principal since trusts pay income taxes at a much higher rate than individuals.
Answered on 3/31/10, 7:22 pm