EST2311. Allocating gains to DNI

This presentation drills down on the specific issue when capital gains may be included in Distributable Net Income (DNI) with the corresponding tax burden passed out to the beneficiary. It is a challenging issue to practitioners and trustees as the rules are complicated and requires an analysis and understanding of fiduciary accounting, tax law and the provisions in the governing instrument.

Learning Objectives:

• To recognIze how this issue interacts with fiduciary accounting and taxation.
• To analyze the guidance currently available in the tax law, state law and accounting law.
• To analyze the competing forces at play requiring attention to this issue
• To determine the trustee's exposure in this area