TAX2314. Distributable Net Income: DNI Is Slightly Less Complicated Than DNA (Part 2)

When it comes to trust and estate planning and administration, the need to understand the income tax treatment has become more important than ever. This program will discuss the fundamentals of distributable net income (DNI) and explain how DNI differs from taxable income and fiduciary accounting income. To help practitioners minimize the burden of higher trust tax rates and avoid many of the traps for the unwary, this program also will address the allocation of DNI among beneficiaries, the separate share rule, the 65-day rule, specific bequests, in-kind distributions, and the inclusion of capital gains in DNI.

Learning Objectives:

• Understand the fundamentals of distributable net income and how it differs from taxable income and fiduciary accounting income.
• Learn how distributable net income is allocated among beneficiaries.
• Discover how to minimize the burden of compressed tax brackets for trusts and estates.